Business

E.ON plummets to a new low for the year

  • E.ON SE – WKN: ENAG99 – ISIN: DE000ENAG999 – Kurs: € 8,656 (XETRA)

The development of the E.ON title is currently underwhelming in several respects. While there is talk of an energy crisis in Germany, the E.ON share price is under severe pressure. At first glance, this development somehow doesn’t match. If supply decreases while demand remains the same, this gives companies the opportunity to charge higher prices and expand their production. This, in turn, should have a positive impact on profits. As a result, the share price is also expected to rise.

But it’s not that simple, as you can see from E.ON’s share. The current losses cannot be blamed on the market as a whole, because while the DAX is now significantly bearish with less than 1.89% and has just hit a new low for the year, E.ON stock is losing in. even more significantly. Furthermore, a new low of the year had already been reached earlier in the week and today the downward movement is accelerating again. This confirms the ongoing bear market.

opportunity or risk?

Looking ahead, a dynamic bear market is slowly but surely hitting an important support area starting at around EUR 8.50. Here, the share was able to stabilize several times after the Crown crisis and even initiated a bull market. While there is still room to get this support in the near term, investors should still see some opportunities in the near future. If medium-term stabilization does indeed succeed, prices could restart in the direction of € 9.25-9.50 or even beyond.

E.ON SE

But you definitely don’t have to rush anything on the buyer’s side. On the one hand, the current downward pressure is enormous, on the other hand the support area mentioned is also relatively large. As the long-term chart shows, this extends to a whopping 7.60 EUR. Based on current prices, there is still a lot of room to go down. Furthermore, it is obviously not certain that reaching the medium-term low will be successful. In this case, the share price could drop further towards € 6.70 or even € 6.

E-ON-crash-to-a-new-year-low-chart-analysis-rene-berteit-GodmodeTrader.de-1

Bottom line: I would currently still use the short-term payback of E.ON shares for sales. Should the price continue to approach the support area of ​​around EUR 8.50 in the coming days or weeks, more attention can be paid to the underlying formations.

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