Daeubner: Chart of the Day: Zumtobel, things are getting interesting

In early 2009, Zumtobel entered a new uptrend. The stock rose well into the second quarter of 2010, but has been declining since April 2010. This decline formed a secondary downtrend (red channel) within the primary uptrend (green channel). Now, things are getting interesting: After successfully testing the support line of the upward trend on 27 August, Zumtubel is still trading above the support of the upward channel. Early birds might enter long positions at prices of around €13.40 and should place their stop-loss at a reasonable distance outside the uptrend channel. Conservative investors should await a breakout above the resistance line of the secondary downtrend (upper red line), hence await confirmation, before adding Zumtubel to their portfolio. But in order for this trade to work, momentum soon needs to pick up. Keep this stock on your watchlist!

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