Trading Idea - Deutsche TelekomEntry: 16,06 EUR
Target: 18.00 EUR (+12%), 25.00 EUR also possible
Stop: 15.72 EUR
1.) Fibonacci Retracement may be used in combination with other conditions in a trading plan to qualify possible entries. In this particular example, price retraced back down to the 50% level. This alone would not be enough to enter a trade. When the retracement level, however, aligns with previous structure, we already have a stronger case. Price often retraces back 50% of the previous price move.
2.) The growing free cash flow and the prospect of share buybacks from T-Mobile US speak for the share. The total growth in the current year should also be solid.
Telekom
Anticipating Rebound for TMTM stock has been tumbling since the beginning of the year due to facing some stiff competition with local internet service provider. It has at least bottomed at RM 3.010 level at the end of June. It however has been rallying since then, touching RM 4.005 level two times, the level which was considered as the previous swing high. Now it has potential to form an inverted head and shoulder pattern, with potential right shoulder being formed at around RM 3.600. If this is the case, it would be a buying opportunity upon breakout of the neckline. It is also interesting to see how market reacts at RM 3.600 level. So a reversal pattern at this level may confirm the reversal of trend will be inevitable.
DT Telekom like a rabbit digging a holeIn May it is a year since they tasted the honeys of the gods, unfortunately it was a pleasure that lasted only one day because they have remained in a declining trend that brought them here.
However everything makes it seem like this is about to end, the next area of strong support is reinforced as a confirmed monthly support.
It is important to take into account that if this does not stop it the next super support will not find it until 12.66
It's going to be interesting to see what happens.
I hope everybody is fine
DEUTSCHE TELEKOM HUGE BULL POTENTIALThe chart tells the story quite accurate. We are within a textbook longterm uptrend.
The market has been consolidating for about a year, creating a big range, that is in my opinion currently coming to an end and providing us with a beautiful buy opportunity.
In recent weeks the market formed the right shoulder of this inverted S-H-S pattern and it led to an impulsive wave towards the 16 handle. In my opinion it confirmed that dips towards the important 15 figure should be bought with a stop below 14.
Deutsche Telekom might be in 2017 on its way towards 20 or even more.
Interim resistance is around 17.50, partial profits can be booked there and stop should be of course trailed.
Also looking at the fundamentals, shows Deutsche Telekom is based on a solid footing and there is quite a bullish potential showing.
Good luck and keep it simple.