Deutsche Post (DPW.DE) - Our expectations: a possible increase from support levels, following a breakthrough in diagonal resistance. We are looking for an entry after a breakthrough in the short-term consolidation formed over the past four days, with stop loss below the previous minimum formed by the bullish pin bar.
Alternative Scenarios: If the price breaks down the short-term consolidation generated over the past four days, this may lead to a deeper downward correction and break the bullish scenarios.
Comment: The price corrected for diagonal and horizontal support, as well as 23.6% Fibonacci retracement. We have a Price Action signal bar: Bullish Pin Bar, and the price now gives good entry levels below the pin high.
Fundamental: The company is a service provider, transporting all cargo by air, water and land. Due to the improving economic environment in Europe, expectations are for growth in consumption and hence supply services.
Over the past three years, market capitalization has risen by nearly 20%, indicating that investors believe the company and the trend is sustainable.
The company's revenue expectations are positive and are projected to exceed €60bl. at the end of 2017, and slightly over €62bl. in the first quarter of 2018.
EPS's market expectations for the company are also rising, with EPS expected to rise to 2.22 euros per share by the end of 2017 and reach 2.39 euros by the end of the first quarter of 2018.
Jr Trader Petar Milanov
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