Action of the day: Adidas
Small analysis today of Adidas, a German company, which one does not present any more. It will be a very short analysis because the situation here is very simple. We have crucial support, which is currently being price tested. What happens from there will depend on medium-term sentiment on this instrument.
So, at the end of June, Adidas broke the crucial horizontal resistance, slightly above the psychological level of 300 EUR. It was not only a round price, but also the top line of the lateral movement locked inside the rectangular formation (yellow lines).
This breakout gave us a buy signal and, indeed, the price climbed higher, hitting new all-time highs. Not bad huh ? Sentiment changed, however, when global markets began to slide. Adidas did not resist and also fell.
There you go, Adidas is currently testing the EUR 303 support, but this time from above. As long as we stay on top, the feeling is positive. A bounce here in the form of a hammer or bullish engulf would be a great opportunity to buy.
On the other hand, the price closing one day below the yellow support would be a very negative sign as it would signify a false bullish breakout and if you’ve been following us long enough you know what that means. If not, let me explain: it means trouble, big, big trouble.
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