After reaching a new high on November 9 at 10.81, the stock is defined by losses. The following downwards trend only ended on March 5 at a low of 7.93 Euro. After that everything happened quickly.
On the low’s day the chart generated a long green candle. The stock reached the area of 8.50 Euro, and then skyrocketed on the following Monday. Reason being the reveal of E.on’s and RWE’s plans of restructuring their business areas.
Just below the 9.00 Euro mark a bullish flag was generated. It met the 50-days line in end-march. It stopped the sales and now might help the bulls to reach higher prices, because the upper edge of the flag was overcome in the meantime. This breakthrough is not significant yet, but if the buyers managed to lift the stock up to 9.16 Euro, there is a high possibility of a further increase up to 9.47 Euro and then even 9.72 Euro.
However, if the E.on stock does fall below the support at the 50-day line at 8.84 Euro, one should account for a drop to 8.50 Euro.
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