Hannover Re is a German stock with a gross premium of around €22.6 billion, is a European and third-largest reinsurance group in the world. Its headquarters is in Hannover, Germany. The company was founded in 1966 under the name Aktiengesellschaft für Transport- und Rückversicherung. This stock is a great example of how to trade European stocks using supply and demand imbalances.
As supply and demand traders, we don’t need to pay attention to fundamental stock analysis in order to buy shares of stock. As you can see in the weekly timeframe analysis for Hannover Re. German stock, there is a very strong weekly demand level that just took control around 120 euros per share. It’s a great setup to buy shares of this German stock right now. I am long on this European stock. There is a lot of profit potential on this stock.
I could spend an hour talking about the history of the company, its profits or lack of them or even how it has performed during the COVID-19 pandemic. I won’t do it because I don’t need to bear that in mind in order to buy stock using my supply and demand stock trading strategy. This is the type of imbalance we want to trade and one of the many examples that are being shared as they happen in the European and American stock market.
We focus only on strong imbalances .Will Hannover Re German stock rally as expected? Nobody knows, but it’s a great imbalance and the bigger picture trend is bullish, so we can only make two decisions. Either we can buy now or we can pass on it. I did not pass on it and took the risk. No risk, no profit. Once you know where you can buy and sell, it shouldn’t be so difficult how to learn to trade stocks.
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.
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