Recent price action for Bayer AG, the German pharmaceutical company has improved somewhat in spite of the rather reserved outlook from numerous analysts due to various reasons including the fact that this group is among those businesses with low growth prospects, it has a high level of debt in proportion to its EBITDA and the company has not been generous with respect to shareholder compensation.
Nevertheless, various technical indications on a weekly timeframe suggest a gradual build up of positive momentum. Bullish divergence can be observed in both the weekly MACD-V indicator and the 14 week relative strength index. Should further bullish price action materialize in the coming weeks, tough resistance is to be encountered at EUR 48.05 which marks the Fibonacci 23.6% retracement from the low, based on the entire EUR 144.12 to EUR 18.378 range traded since April 2015.
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