SGL CARBON GERMAN STOCK WITH 30% POTENTIAL
Updated
I pulled the trigger on this german stock. I am seeing very good potential in it.
After a multiyear downtrend which took it from 40€ to 8€ i believe we might be in for a correction, normally i dont like to pick bottoms, but this is a tasty R:R and the fundamentals are also increasingly promising.
+SGL Carbon was finally able to sell the final part of its losing operations. Leaving now more funds, to concentrate on its profitable segment.
+VW, BMW and SKion, have over the last year became big shareholders/investors in this company. They possess together about 45% of SGL Carbons shares and they have been constantly adding more.
+Societe General yesterday changed their outlook for the share price, they are now seeing 12€ per stock as fair value for SGL Carbon.
Now to the technical part:
We have a big bottom being formed since the beginning of 2016. One can see a potential double bottom.
The major multimonth trendline, is a very important line that market participants were testing several times.
Bulls managed to make a textbook bullish outside bar, enveloping the previous 5 weekly bars, this is chart technically speaking a bullish signal.
One can see on the daily chart a more detailed view of the current situation.
I am personally long since 8.45€ looking for this move to extend to 11€ midterm, but this is not a buy recommandations its just a view i have on this stock.
It might as well fall, no one knows for sure. My stop is currently placed at 7.90€.
I think dips toward 8.30 are a good buying opportunity with a stop below 8€.
Please use decent risk management and dont risk too much on one trade.
Finally, thanks for reading all this.
Blessings to you all.
After a multiyear downtrend which took it from 40€ to 8€ i believe we might be in for a correction, normally i dont like to pick bottoms, but this is a tasty R:R and the fundamentals are also increasingly promising.
+SGL Carbon was finally able to sell the final part of its losing operations. Leaving now more funds, to concentrate on its profitable segment.
+VW, BMW and SKion, have over the last year became big shareholders/investors in this company. They possess together about 45% of SGL Carbons shares and they have been constantly adding more.
+Societe General yesterday changed their outlook for the share price, they are now seeing 12€ per stock as fair value for SGL Carbon.
Now to the technical part:
We have a big bottom being formed since the beginning of 2016. One can see a potential double bottom.
The major multimonth trendline, is a very important line that market participants were testing several times.
Bulls managed to make a textbook bullish outside bar, enveloping the previous 5 weekly bars, this is chart technically speaking a bullish signal.
One can see on the daily chart a more detailed view of the current situation.
I am personally long since 8.45€ looking for this move to extend to 11€ midterm, but this is not a buy recommandations its just a view i have on this stock.
It might as well fall, no one knows for sure. My stop is currently placed at 7.90€.
I think dips toward 8.30 are a good buying opportunity with a stop below 8€.
Please use decent risk management and dont risk too much on one trade.
Finally, thanks for reading all this.
Blessings to you all.
Trade closed: target reached
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.