BASF shares: Selling pressure before the quarterly figures - Are buyers not without a chance?

BASF shares: Selling pressure before the quarterly figures - Are buyers not without a chance?

According to a report from stock3.com, BASF shares are currently under pressure. Sellers dominate the market, but there are still opportunities for buyers. The share is in a medium-term correction and is approaching its previous low of EUR 40.48. The current price losses are putting pressure on buyers from mid-October. The question is whether the current attempt at stabilization will fail.

The tension is rising because an answer to this question could be found this week. In order to change the downward trend, prices would have to rise sustainably above around EUR 43. This would form a bottom and allow profits up to EUR 44.60. Ideally, the correction that has been going on since the beginning of the year could be completely ended.

However, the share price is cheap below around EUR 43, but buyers would have to fight against the ongoing downward trend. On the other hand, the bears are facing the major support from last year, which starts in the area of ​​around EUR 40 and goes up to a good EUR 37.90.

In conclusion, new lows are possible in the short term, but offer interesting opportunities from a countercyclical perspective. A new annual low or a price close to it could be a speculative buy or hold position. On the other hand, there could be a slight recovery for sales. However, it should be noted that the quarterly figures on October 31st currently also act as an additional uncertainty factor.

As an economist, I analyze this information and consider the impact on the market. The fact that sellers are dominating and the stock is near its all-time low suggests that investor confidence in the company has fallen. This may have a negative impact on the market as investors may be less willing to invest in BASF shares.

In addition, the ongoing downward trend may lead to other industries and companies finding themselves in similar situations. When investors lose confidence in a key industry such as chemicals, this can lead to an overall decline in investment in the sector.

It is important to note that the October 31 quarterly results may create further uncertainty. If the numbers are disappointing, this could lead to further losses for BASF shares and have a negative impact on the market.

Overall, the situation indicates a difficult phase for BASF, which may impact the market, consumers and the entire chemical industry. The further development of the share price and the quarterly figures will be crucial in determining the exact impact. It is recommended to follow developments closely and make investment decisions accordingly.

Source: According to a report by stock3.com, link