A short analysis today of Adidas, a German company, which needs no introduction. It’ll be a very short analysis because the situation here is very straightforward. We have one crucial support, which is being currently tested by the price. What will happen from here will depend on the mid-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 just a round price but also the upper line of the sideways movement locked inside of the rectangle formation (yellow lines).
That breakout, gave us a buy signal and indeed, the price did climb higher making new all-time highs. Not bad, huh? Sentiment changed though when the global markets started to slide. Adidas did not resist and went down as well.
And here we are, Adidas is currently testing the 303 EUR support but this time, from the top. As long as we stay above, the sentiment is positive. A bounce here in the shape of a hammer or a bullish engulfing pattern would be a great occasion to buy.
On the other hand, the price closing a day below the yellow support would be a very negative sign as that would mean a false bullish breakout and if you’ve been following us long enough, you know what that means. If not, then let me explain: it means trouble, big, big trouble.
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