Stock of the day: Henkel AG
06 April 2023
Currently, there is an ongoing bearish correction on the stock but there is no doubt that the long-term sentiment remains positive. In this environment, we found a very promising bullish setup on Henkel AG, a chemical company traded on the Stock Exchange in Frankfurt.
Henkel is currently training on the yearly highs, with the last two weeks being crucial. The blue lines that you can see on the chart are the wedge pattern created in the downtrend, who was suggesting a further drop. Instead of a breakout of its lower line, buyers attacked and managed to break the upper line of this formation. That canceled the wedge and brought about a positive sentiment.
Along with the blue line, the price broke the horizontal resistance at 69.5 EUR which was a key support of 2021 and early 2022. We are also above the 38,2% Fibonacci; and all this paints a positive picture here. The buy signal will be present as long as the price stays above the green area. The chances to drop below are currently really low.