Wacker Chemie could start a technical downward trend after the rebound in recent sessions.

Technically, the security could run out of steam close to the EUR 55.6 resistance. Indeed, the stock is moving in an upward trend in the short term but it could know a halt. In this context, the downward movement could improve and it should expect a return to EUR 49.2. Indicators show an overbought situation confirming this scenario.

The graphical configuration argues to establish a short position at the current price. The end of the technical rebound, the consolidation phase and overbought situation: Wacker Chemie has all the characteristics for short selling. The first objective will be fixed near the EUR 49.2 short term support area. This strategy should be protected by a stop loss above EUR 55.6.