Bayer stock is a life science company trading on the German stock exchanges with the symbol BAYN. The Company’s segments are Pharmaceuticals, Consumer Health, Crop Science and Animal Health. The Pharmaceuticals segment focuses on researching, developing and marketing prescription products and speciality therapeutics, especially in the areas of cardiology, oncology, gynaecology, haematology and ophthalmology, as well as radio-pharmacology and others. The Consumer Health segment develops, produces and markets nonprescription over-the-counter.
Bayer AG stock is a German company trading in the German Stock Exchange. It is one of the biggest and most important pharmaceutical companies in the world. I doubt that you’ve never heard from Bayer AG, because its products range from the famous Aspirin to even “more popular” Viagra 🙂 Now, I believe you are probably smiling and remembering this company 🙂 Before starting to write this blog post on Bayer, I googled the company name to try and find some extra information I could add, that would either support or negate the strong rally we are expecting on this particular pharmaceutical German stock.
I read things like the statement below:
Bayer had said last month that it expected core EPS would drop €5.6-€5.8 in 2021.
Wouldn’t such a expected EPS be negative for the stock? Well, it seem that it’s not because the stock continues to rally. See below the weekly timeframe.
As supply and demand traders and price action technical analysts, we are expecting a powerful rally on the stock regardless of what the fundamental analysis and analysts are saying. I never cared about many analysts who are just giving their opinion based on an incomplete global view of what the global sentiment about the stock is telling us. Price action can tell us a lot, and they are just ignoring both price action and supply and demand imbalances.
I also read this statement about Bayer AG stock:
Bayer details the effect of the expiring patent on its best-selling Xarelto stroke prevention pill from 2024, forecasting the pharmaceuticals unit EBITDA margin as a percentage of sales coming in above 30% in 2024, down from 34.9% in 2020, before returning to sustainable growth in 2025.
Can you understand this statement’s nature or foresee any impact on the stock’s underlying price action? Because I can’t, and even if I could, I would prefer to put my limited time to better use. In the time that it took me to read and try to understand the nature of these statements, I would have analyses probably 100 stocks out of more than a thousand that make my watchlist. To me, it’s a complete waste of time because why should my fundamental analysis be better than any of those expert analysts. I am not a good fundamental analysis, and I am actually the worst fundamental analyst because I’ve learnt that it won’t help me take a high probably stock trade. But I am an excellent supply and demand and price action technical analyst.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances are ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock? Or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.
Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves. This game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen. And wait for the price to pull back or dip into the price levels we want to trade, in our case. These price levels are made of supply and demand imbalances.
If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand stock trading course.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock. You can also use stock options strategies to go long or short at these specific supply and demand levels. Long calls or long puts or spreads. You can even buy CFD (contracts for difference) if you are in a country where it’s allowed.
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.