Siemens Breaks Above -27.2% Fib Target & Aims at $150

The Siemens AG (SIEGn) stock is in a strong uptrend after bouncing at the 38.2-50% Fibonacci levels.

A bullish bounce at the 21 ema zone of the daily chart could confirm another push higher.

Price Charts and Technical Analysis

The Siemens daily chart is bullish. Let’s review the key price patterns and also potential targets:

1. The uptrend has all the moving averages aligned for an uptrend. Price is above 21 ema zone, which is above 144 ema, 233 ema, and 610 ema.
2. Price action made a bearish pullback after hitting the -27.2% Fibonacci target. But the bullish breakout above the resistance (orange dotted line) seems to confirm the uptrend continuation.
3. As long as price action stays above the support trend line (green), price remains in bullish territory.
4. The main targets of the upside are the Wizz 8 level and the -61.8% Fibonacci target zone.
5. A bearish break below the support places the uptrend on hold (yellow) and a deeper pullback invalidates it (red circle).

On the 4 hour chart, the strong impulsive price action is probably a wave 3 (orange). The pullback has an ABC (blue) within wave 4 (orange). Therefore, the current upside is probably a wave 5 (orange):

1. Within that wave 5, price is probably building numerous waves 1-2 (blue/green).
2. The current pullback could be a wave 4 (green) because price action stayed above the top of wave 1.
3. A break below the support (green box), however, would invalidate (red circle) the current wave outlook.
4. A shallow pullback (orange arrow) could just be a simple pullback within the uptrend, if price action makes a bullish bounce (green arrow).
5. A bullish breakout (green arrow) could indicate an immediate upside.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter 

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