Chart Analysis: Lufthansa Is Facing Resistance

Every trader knows that the higher the risk, the higher the potential gain – in case of Lufthansa it would have paid off if you would have taken the risk and scooped up some shares at the low beginning of December. Such risky investments are not for the fainthearted though and require a sophisticated approach to be successful.

If you have followed us for a while or even taken our trading courses you will know that we follow a very calculated approach when it comes to trading. We only engage if all items on our checklists are ticked – which keeps us out of trouble most times to be fair but also prevents potential (risky) gains as we have seen with Lufthansa.

That being said, the stock is still very interesting and not done just yet. We are approaching a technical level of resistance where buyers may lock in some profits and therefore stop the momentum we have built so far.

The screenshot above shows the two potential routes price may take in the next few days. From a technical analysis point of view we are facing resistance. That doesn’t mean that we won’t have the chance to break free and climb to new highs but the more likely scenario – looking at the current picture – is that price will retrace first before buyers may initiate another push to the upside.

The bottom line is we will probably see price ranging for a while before new impulses – whether it be up or down – are initiated

With our students and trading lounge members we will keep a very close eye on the price movements of the Lufthansa stock and take action accordingly.