Two Setups For Siemens AG

One of the stocks I closely monitor and have in my portfolio is Siemens AG traded in Germany. I have two contradicting setups in this stock and only the bullish so far looks activated. Although there is a bearish setup that we are going to talk about, the good thing is that one cancels the other. So if the bearish setup gets activated, we forget the bullish view at least for short-term.

Bullish setup

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The rise from 100€ looks impulsive while the pullback is so far in 3 waves and has reached a bit lower than the 50% Fibonacci retracement. Price has started rising upwards. We could be at the very early stages of a new upward wave that will bring price towards 130€.

On the other hand, if we take a closer look at the 2-hour chart we observe a bearish flag pattern.

(Click on image to enlarge)

Price has support at 110€. A firm break below it and a sequence of lower lows and lower highs will open the way for a decline towards 100€ at least. So if someone chooses to go long, the risk would be around 2% as bulls do not want to see price below 110€. On the other hand, bears need to be patient in order for their bearish pattern to be confirmed with a break down move below 100€. 

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