In the hourly chart we can see two opposing, relevant trends. The smaller trend has transitioned into a downward trend, and after the last movement from Friday it is now in a movement, meaning that the next correction should be coming up soon. The large green trend remains upward-oriented and is also still young enough that this can also proceed onwards at any time. One should decide on one of the trends.
The technology index from the USA is showing a completely different image, for here, the superior, medium trend is facing downwards, whereas the small trend is running upwards and is itself in the movement. This makes a clear analysis almost impossible, because it goes against the principles of Charles Dow, since for a clean trade, the trends all have to be running in the same direction. This means that for now, I would recommend taking the sidelines.
Infineon Technologies AG (DE:IFXGn)
Infineon Technologies AG is Germany’s largest and Europe’s second largest semiconductor company, and employs around 30,000 staff worldwide at 21 research and development locations as well as 12 production sites (status: September 2014). In the business year 2014, Infineon Technologies achieved a turnover of 4.32 billion euros and an EBIT (earnings before interest and taxes) of 525 million euros.
The company seems to be doing pretty well, since the chart in the short-term hourly chart, at least, is showing us a clear upward trend. Our DowHow signals already occurred last week, clearly predefining the direction. Since the trend is still relatively young, one can still speculate on a trend continuation at any time here. The stop should be located beneath the green box.
Disclaimer: Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.
