Market Analysis

BMW: No longer in the fast lane?

Bayerische Motorenwerke AG, or the acronym BMW, should be familiar to every car fan. No matter how fast and comfortable their cars may be, the share price is developing slowly.

Since the end of January 2018, the BMW share price has been moving slowly but steadily south. While the 52-week high was still at €86.74 (in September last year), the 52-week low at the beginning of June was in the €61 zone.

Not all shareholders like this development and so the Handelsblatt reports that CEO Harald Krüger’s job is at stake. The Supervisory Board meets on 18 and 19 July at the BMW plant in Spartanburg/South Carolina. Krüger’s future may depend on how the share price moves in the next two weeks.

A glance at the chart shows that yesterday’s trading was able to temporarily push the share above the highs of 20 June and 27 May. This means that the market has risen above the low it had been at since the end of May.

This puts the market at a critical structural point. The zone at €65.17 could be decisive for further progress of the market. If the bulls push through this zone, two significant structural levels could be critical for the new development of the market — the zone at €69.55 and the zone at €74.88.

If, on the other hand, the market bounces off this level, support zones will be much tighter to the actual market price. The area around €63.20 should support the market. However, if the market breaks through here, the €61.27 area could be the last line of defense. If the market breaks through here as well, much lower prices could be likely.

The MACD oscillator formed a bullish cross on 6 June. This signal was recently confirmed when the MACD line crossed its zero lines to the upside.


BMW GE Daily Chart ActivTrader

BMW.GE Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst, ActivTrades

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