There are great opportunities to sell short Bayer AG German stocks at weekly and daily supply supply levels. Trading supply and demand imbalances is all waiting to sell pullbacks and buy dips once the imbalances have revealed themselves.
Previous weekly supply level around 80 is playing pout after five weeks to pullback, reacted strongly to that supply and it has created a new weekly supply level around 70. There are many times where price will just not pullback to our entries, but that’s trading, it’s part of the game. You must wait for the right trade setup to be created according to your rules and your trading plan and once all rules match your plan you should pull the trigger.
Great short opportunities created on Bayer German stock. If you can’t sell short stocks in your broker, you can use all kind of different option strategies to sell at supply zones, the most basic one is a plain vanilla buy put.
We don’t pay attention to fundamental analysis, news or earnings, we don’t need to those to make a trading decision based on supply and demand. But if you are one of those that like to know more about the company and its stock fundamental analysis before placing the trade, times have been tough for investors in Bayer AG because earnings have failed to meet expectations, and legal headaches have weighed on the stock price. The five-year targets outlined by management seem overly optimistic and dependent on stretched synergy and growth targets. The ongoing litigation could also result in a huge liability down the road, and we don’t feel comfortable going long at these levels.
Bayer AG acquired US-based agribusiness Monsanto in June 2018, and its Glyphosate herbicide brands Roundup and Ranger Pro. A San Francisco jury recently awarded $289 million in damages (later reduced by a judge to $78 million) to the plaintiff because Roundup failed to warn of potential risks of using roundup and that was a substantial factor in causing harm to the plaintiff. Approximately seventeen thousand lawsuits are in the pipeline concerning the company’s Essure birth control product, and the US Food and Drug Administration (FDA) has mandated that the product will not be sold or distributed in the US after the 31 st of December 2018. Bayer has already withdrawn the product.
News and fundamental analysis is telling us to go short the stock as well.
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