EOAN – Have We Seen The Bottom?
Markus Gabel | Apr 20, 2016 08:02AM ET
Weekly chart:
This German value E.ON SE NA (DE:EONGn) has a long, long downtrend behind it, having come down from around €50. In the medium-trend size we are in the sixth movement arm, and it seems as though the price has found a bottom at €7. The currently visible correction move has the potential to run up into the red correction zone.
Daily chart:
In this trend size we see evidence of a bottom formation at approximately €7. The last downwards movement led the price down to €7.05, where it then corrected up into the red correction zone but was subsequently unable to continue the trend. On its way to the last point two, more than one attempt was interrupted and we now see an increasing price. In this case, we have to be careful with short trades.
Hourly chart:
In this tradable trend size, the chart is offering us several trading chances. The current low in this downtrend lies at €7.82, and the correction zone runs between €8.95 and €9.71 on the upper side. The price has arrived in the correction zone at this time, and our DowHow signals are occurring. For a short trade it is slightly too early, because the current upward move is very strong. Have patience for a while, because the next DowHow signals are bound to occur.
For presentation purposes the trading software "AgenaTrader" has been used.
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