When the bank's management announced three weeks ago that it plans a major restructuring of assets, price came in a wide range between 17.00€ and 19.70€. The company is planning to issue new securities and generally this negatively affects the price of the present. Bank plans to increase its capital by 8.5bl. euros on March 21, and it is implemented.
In recent days the company's shares were under serious sale by price yesterday opened a very large GAP down reflecting negative sentiment in the financial sector and the capital increase through the issuance of new shares.
Technically we have a strong signal Price Action and the formation of a new bearish channel. Currently the price is below horizontal support and 38.2% Fibonacci retracement.
The next level of support is 50% Fibonacci retracement which coincides with the 200SMA and can influence.
Indicators:
The options for entrance are two, the first is an aggressive buy-now, and the second is a conservative who needs a price adjustment up to have a short stop.
SL: 17.71
Alternative scenario: If the price crosses above the horizontal and diagonal resistance and remain there, the negative scenarios will be spoiled and can see new upward movement and test the previous highs.
Jr_Trader_P_Milanov
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World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
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