Daily 4XSetUps - Historical Turnaround in ADS Is In Full Swing

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2025/02/05
Daily 4XSetUps - Historical Turnaround in ADS Is In Full Swing
“battle for bearish GAP was recaptured in the second half of 2025!
will the gap be defended in the first quarter? in the first half of 2025?”



Our German DAX DAX came under some pressure again today, Wednesday, February 5th, 2024, after the recent stabilization. In view of the customs conflict between the US and China as well as negative news from the US technology industry, the leading German index fell by minus -0.21% to 21,460.35 points around midday Central European Time. Nevertheless, it remains close to the recently reached record high. Because he was also able to curb his losses somewhat according to price data from the Eurozone. The MDax MDAX of medium-sized companies here in my home country of Germany fell slightly by -0.03% to 26,411.96 points in the middle of the week. The Eurozone leading index EuroStoxx 50 EUSTX50 , on the other hand, has also lost a small minus of -0.18% so far.

Meanwhile, price inflation at producer level in the Eurozone did not weaken further in December 2024. "Prices stagnated compared to the same month last year, while economists had expected a slight further decline." Producer prices also tend to influence consumer prices, which the European Central Bank (ECB) bases its monetary policy on. Last week the ECB cut key interest rates by 0.25 percentage points. Experts expect further reductions, which tends to make stocks more attractive than fixed-interest securities here in the European economic area. Nevertheless, the issue of tariffs pushed by Donald J. Trump is still more or less hovering over the price action on the financial market. Many fear that the American-Chinese customs conflict is threatening to escalate into a trade war with consequences for the entire global economy. And that's also because the US import tariffs on goods from Mexico and Canada have only been postponed - and not lifted. France24, for example, also formulated a worthwhile analysis “What Trump’s transatlantic trade war would mean for Europe”. Meanwhile, the gold price action GOLD continued its record run on thus Wednesday, the 5th february 2025. Which just proves the risk aversion of traders and/or investors.


“When a problem occurs, conduct the discussion at two levels: 1) the machine level (why that outcome was produced) and 2) the case-at-hand level (what to do about it).”
Ray Dalio



With an increase of +44% in the past 12 months, Adidas shares ADS are among the top 10 in the DAX DAX . And analysts at Swiss UBS currently see no signs of the rally slowing down. The major Swiss bank is raising its price target for the share from €280 to €289 and confirms the buy recommendation. Compared to the current price action of €251.9, this means a further upside potential of around +14%. Which more or less goes hand in hand with my expectations - even this long ADS 4X setup. Despite concerns about a slowdown in momentum in 2025, UBS continues to see strong growth opportunities for Adidas ADS . The analysts expect a sales increase of +10% and an improvement in the EBIT margin of 350 basis points by 2027. Three factors support this assessment: On the one hand, Adidas ADS could position itself more strongly in various sports segments and benefit from Nike's NKE weakness, writes UBS analyst Robert Krankowski. In addition, there is a clever brand strategy with different regional concepts. There is also a good chance that profit margins in the important US market will soon improve significantly.

€262.8 : 2025/01/22 - Annual High 2025
€251.9 : 2025/02/05 - last price action
€247.6 : 2020/03/05 - GAP High Coronavirus Outbreak SellOff
€245.1 : 2020/03/06 - High Of False Trading Day Inside GAP
€237.7 : 2020/03/06 - Low Of False Trading Day Inside GAP
€234.9 : 2020/03/10 - GAP Low Coronavirus Outbreak SellOff
These are the most important price actions for the ADS share. The GAP is essential in the historical context because it allows us to differentiate the price action into historical low prices and/or highest prices. Because we were still at more or less €100 at the beginning of 2023, we shouldn't be so hasty - which is why the price target of €300 is also dated to the end of this year 2025. Thats why, we should be satisfied if we bulls defend the price action terrain between €247.6 and/or even €234.9. And give us time for the upcoming February 2025. In order to then tackle the previous annual high of €262.8 in March 2025. Therefore, the motto in the case of this long ADS 4XSetUp is: “wait and drink tea”, as the fine, noble Englishman would say.

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€300.0 : 2025/12/31 - Target Price
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€252.1 : 2025/02/05 - last price action
€242.2 : 2025/01/21 - Entry Price
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€200.0 : 2025/12/31 - Stop Price
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Have a good time
- regardless of the price action!
Aaron



“daily 4XSetUps - …” is pure information material!
By trying to give you even more information about some trading capabilities to trade and/or invest in some securities. This post is not a call to action - it only provides information. You decide (not) to decide. Even if I am writing daily 4XSetUps with concrete entry prices, target prices and/or also stop prices! It is like it is - like I said; You decide to respond to the analysis I just formulated to buy, to sell, or to do nothing! More information about my approaches to investing in something specific or just trading it, or even just describing it, can be found in the daily "Another 48h - DXY ...! Analysis Post. Where I try to track the price action in DXY every day so that we learn something new daily.

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