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Daimler AG Technical Analysis - Daimler AG Trading: 2015-10-20
Will Daimler forecast come true?
The car manufacturer Daimler will release its accounting statement on October 22. Its earnings are expected to increase by 13% to 37.5bln euros and the adjusted EBIT to increase by 22%. Will Daimler forecast come true and will it provoke the stocks price growth?
The German company Daimler produces a wide range of automobiles including the passenger cars Mercedes-Benz and Smart as well as trucks, buses and minivans. According to the consensus forecast, its net income in 2015 can increase by 22%. In the first half year it has already added 40% compared to the same period last year. Meanwhile, the stocks have added only 5.6% since the start of the year. This is not much more than the DAX 30 index growth of 3,7%. In our opinion, the Daimler quotes can move upwards in case of positive quarterly reports. The additional positive can come from the expected dividend yield of about 5%.
On the daily chart DAI:D1 has surpassed the resistance line of the downtrend. The MACD and Parabolic indicators show signals to buy. The RSI is above 50, but has not yet reached the overbought level. It has formed the positive divergence. The Bollinger Bands are contracting which may mean lower volatility. The bullish momentum can develop if the Daimler stocks surpass three last fractal highs at 76.7. This level can serve the point of entry. The initial risk limit is possible below Parabolic signal and the last fractal low at 68.1. Having opened the pending order we shall move the stop to the next fractal low following the Parabolic and Bollinger signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop-loss level of 68.1 without reaching the order of 76.7, we recommend cancelling the position: the market sustains internal changes which were not taken into account.
| Position | Buy |
| Buy stop | above 76,7 |
| Stop loss | below 68,1 |
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