Beiersdorf: long positions after a correction

Beiserdorf manufactures and distributes consumer goods in Europe, America, Africa, Asia and Australia. The company operates in two consumer and business segments. The focus of the consumer segment is on the cosmetics market, and the business segment is focused entirely on product solutions for the print and automotive industries.

It seems that this seemingly strange mix of sectors in which the company operates has high and sustainable profits. This makes it attractive to investors in the long run, and the current price correction makes us think that the levels are good for making purchases.

The levels are good because the price is supported by long-term diagonal support, forming a trend support wedge in the downward correction channel. In the bullish scenario, the price could potentially break the wedge to exit the upward movement towards RS1. There we will expect some bear resistance and a correction before the upward movement continues again to RS2.

The second option suggests that the price will confirm the bearish flag, with a break below the diagonal support with an attempt to attack SP2 in the area of ​​38.2 Fibonacci. On the upper 50, periodic resistance is dynamic, so it will also make it difficult for bulls to try to continue the trend.

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