The shares of the esteemed automotive manufacturer, Mercedes-Benz, have exhibited a consistent downward trajectory subsequent to their historic pinnacle of EUR 75.92 on March 6th, ultimately reaching a previous unprecedented low of EUR 64.51. However, a countermovement has recently commenced, offering the potential for a notable recovery. Presently, Mercedes-Benz shares have encountered a substantial resistance level at EUR 68.40, prompting the question of a potential breakthrough.
Traditionally, countermovements within a downtrend tend to conclude in proximity to the 10-day Exponential Moving Average (EMA). However, on Monday, Mercedes-Benz shares surpassed the 10-EMA, indicating an impressive display of strength. Consequently, the possibility of a subsequent surge above the resistance at EUR 68.40 has emerged. Moreover, such an advancement could potentially propel the share price further upwards, targeting the 50-day EMA at EUR 69.35. In the event of a subsequent decline in price, the initial support level to monitor would be the 200-day EMA, presenting an initial test at EUR 66.65.
In conclusion, traders may consider speculating on a rally in Mercedes-Benz shares, particularly above the resistance level of EUR 68.40. To capitalize on this opportunity, a long position in the form of a Long Mini-Future (VU1A37) from Bank Vontobel could be pursued. It is advisable to establish a price target within the range of EUR 69.00, while simultaneously placing a stop at EUR 66.00 to mitigate potential risks.
Business idea: Mercedes-Benz
|Basic||Mercedes Benz (ISIN: DE0007100000)|
|type of product||Open the turbo phone|
|ISIN/WKN adds product||DE000VU1A370 / VU1A37|
|Course Knockout Call (Date)||€1.23/€1.24 (05/15/2023, 1:20 pm)|
|Base price difference||€79.61|
|threshold to hit||€79.61|
|Stop Calling Lost||€1.00|
|the target phone||€1.30 (+4.00%)|