Date: 20 Jun 2019
There is a company from a place that almost nobody outside Germany knows. The place is Herzogenaurach, a town in Bavaria. In contrast, nearly every child knows the company logo, at least if they are interested in sports. Three stripes on the side of a pair of sneakers or sports trousers were the distinguishing mark of Adidas for years. In 2014, the company wanted to have these three stripes registered as a trademark within the EU and had them recorded. A competitor of the company filed a complaint against this in 2016. In proceedings before an EU court, Adidas has now lost. The decision is not yet final, and Adidas may appeal.
Following this announcement, the Adidas share price fell yesterday (Wednesday). From a long-term perspective, the stock is still in the bullish zone. Since mid-2015, the company has been able to work its way up slowly but steadily, more than quadrupling its share price. In recent weeks and months, the share price has reached one all-time high after another.
This was also the case on yesterday’s trading when the share reached a new all-time high before falling back. If the market recovers in the coming trading days, a first barrier on the way up could already be waiting at €278.90. The market will then be able to continue its upward trend. If the price pierces through here as well, another resistance could remain in the zone at €304.10. The price may then rise again in the coming days.
However, if the bears take advantage of the current weakness, there could be support in the structural zone at €250. If the market falls through here as well, there are several other support zones – the upper and lower edge of the gap, or the structural zone at €221.80. If the market also falls through here, the picture could cloud over, and further support at €190 could wait.
The MACD showed a bearish crossing at the end of May. However, the trigger line and the MACD line are moving towards each other. The histogram is in negative territory.
ADS.GE Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst, ActivTrades
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