The renewed breakout attempt above the horizontal resistance at 234 - 237 euros was sold off. A wedge formation is beginning to emerge. This would be bearish to interpret. Due to the overall strength of the market as a whole, we maintain a main scenario that targets renewed tests of the upper trend line of the wedge formation at 250.
However, breakout attempts on the upside should be treated with caution.
A confirmation of the bearish wedge would take place below 210 euros. The target would then be 160 euros on the downside!
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Old analysis from 09.09.2023
Adidas AG – pressure build-up or breakdown?
The Adidas share is in a medium-term uptrend. In the calendar year 2024, the share has so far achieved a performance of almost 20%. This represents a significant outperformance compared to the DAX, which stands at 9% in the same period.
From a technical point of view, the Adidas share is somewhat stuck. It has been consolidating sideways since the end of April. There were a few false breakouts at both the upper and lower sides, which made it difficult for trend-following traders to trade procyclically. Currently, the stock is wedging between the medium-term lower trend line, which runs at around 214 - 215 euros, and the horizontal resistance in the 234 - 237 euro range. A further retest of this resistance should be targeted. If a sustainable breakout above 240 euros is achieved, this will release upside potential of up to around 275 euros.
A drop back below 210 euros would be the first significant warning sign. Below 192, the chart picture deteriorates significantly and a drop to 150 euros becomes likely.
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