Allianz (ALVD) Breaking All-Time High – Stocks - Daily

9 בפבר׳ 2022

ALVD

Taking a look at Allianz (ALVD) on the daily chart, we can see that it's reached an all-time high that it hasn't seen since February 2020.

Once reaching its peak in February (at the price of approximately 231), it reversed and dropped straight down to 116 in a matter of days. It took two years to recover, and now it is hovering at 231 once again.

The analysis shows the extended downward trendline from the high point in February, moving across the peaks in June 2021. If the price was still below this line, I would be inclined to consider it still in a downtrend. But using the 1-2-3 change method and having the price close above this line of resistance, we can assume that it is in an uptrend now.

An upward trendline marks the movement from the falling price back in 2020 along the valley of the price through September and December of 2021.

Currently, the price is on a massive incline uptrend, which is enhanced by an upward tightening wedge. Using the Fibonacci retracement, we can also see that there seems to be a partial rise indicating that an upward breakout is imminent.

If the price breaks through this barrier, then there are no resistance levels standing in its way. This could mean that price will climb to a new all-time high but determining where that is could be difficult.

The long option here would be to set your stop loss below the Fibonacci retracement level of 38% and then go for a solid 5% increase in price from the breakout point (which is 232 about). This would yield you a reward ratio of 2 to 1. It might not be the most considerable trade, but you could run with the breakout and see where it goes.

One of the negative factors I would consider is that selling pressure on the previous valleys has been very high compared to the averages. Moreover, the last time the price reached this level, it plummeted. Thus I would wait for the price to close above 232 before going long.