Daeubner: Strabag - The day resistance falls

Strabag´s share price continuously fell over the last year. The share declined from almost €25 to around €16 this fall. A small countertrend began in September; and has brought the price back over the major resistance line of the downtrend. It is still too early to speak of a break-out, because the break-out has a good chance of being a false break out. So buying now might not be the best option, but as soon as we see more follow-through on the buying side, the break out will be confirmed. Despite the chance for a false-break, general Dow Theory dictates that a higher high is more likely than a new lower low. Hence, if you like to bet on trend reversals rather than trend continuation plays, Strabag is a good opportunity unfolding in front of our eyes.