FlatexDegiro...will it respect the macro trend?
The flatexDegiro stock has a history from November '16 until now and is in an uptrend, following a diagonal line that has been providing support during the price corrections over time.
The first uptrend cycle occurred between December '16 and May '18. The price rose by 176% from the minimum and reached the algorithmic level 1.62.
The subsequent correction occurred between May '18 and December '18, the month in which the minimum was reached. The price corrected by 57%. This minimum was made at a bullish OB on the 3M and is the second point that originated the oblique trendline. In the price's reaction to this OB, the price began to reverse, making a higher low afterward at the 0.79 level.
Between December '17 and June '21, the price rises by 671%, reaching the algorithmic target (1.28) of the retracement of the previous decline.
From June '21 to December '22, the price retraces again, correcting 81%. It finds support again at a bullish OB on the 3M that had confluence with the algorithmic level of 0.79 retracement of the previous upward movement. This zone coincides with the oblique trendline.
It's safe to say that the price, finding support in the mentioned zone, reversed the trend, initiating the new uptrend movement.
So since December '22, a new uptrend has begun, where the price has been making higher lows, respecting the swing lows and making higher highs, violating the swing highs. The price action has thus been bullish. This price action has created a new diagonal trendline with a steeper slope. The last swing high reinforced liquidity at the level of around €11.7. Then the price retraces, touches the oblique trendline again, and breaks through that liquidity zone, causing a market structure break.
This was yet another signal and final confirmation that we are indeed in a new uptrend.
In the short term, the level of approximately €16 is a zone of interest and where a reaction is expected. There is a volume imbalance with confluence of the 1.62 retracement of the last corrective movement and also confluence with a bearish propulsion block.
From a long-term perspective, we can establish the median of the fork and the first prominent algorithmic level as targets. If the macroeconomic situation is favorable, it's not unreasonable to see the stock price reaching around €48.
