Loading...
by Darius Anucauskas

Could Monsanto’s Roundup Hurt Bayer AG Stock Again?

At the end of March, we saw Bayer AG stock (ETR: BAYN) taking another strong hit, which led the share price to drop around 15 dollars. The company’s stock remains risky for investors, who are still spooked by the ongoing scandal over one of the Bayer’s units, Monsanto, which sells a weed-killing chemical that is used in agricultural and across various other industries. The chemical is feared that it could cause cancer to its users. After a court ruling against the company in August 2018, the stock took a nose dive and sold off heavily.

From the technical side, after finding support just slightly below the 55-dollar price tag, the stock rebounded and got back above its December low, around the 58.30 area, which now becomes an important level to watch. In the very short run, BAYN could travel a bit higher, but there are some strong obstacles on the way higher, which may result in a short-lived upmove.

A push back above the 61.47 barrier, marked by the high of March 22nd, could invite more short-term buyers, who could try and lift the stock to its next potential strong resistance zone, at 63.01. This zone is the high of March 20th, which is just slightly below the stock’s short-term downside resistance line taken from the high of March 6th. If the share price struggles to rise above the 63.01 level, or that downside line, this might be a sign for those short-term buyers to jump off the stock, which may result in BAYN sliding back down. This is when we will look into a potential re-test of the 59.18 hurdle, or even the 58.30 support area, which is December’s low.

Alternatively, if the previously-mentioned downside line gets broken and the price rises above 65.12 barrier, marked by the low of February 15th, this could give hope to potential BAYN investors, as it could increase the chances for the stock to move further north. We will then look into the possibility for the stock to re-visit the 66.43 obstacle, a break of which could open the door to a bigger uprise. The next potential target then could be the 69.95 level, which is the high of March 19th.

Bayer 4hour

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT