In today's Equity Leaders Weekly, we discussed the ongoing conflict in Central Europe and its impact on the Polish stock market. Germany has faced similar challenges, particularly with the disruption of Nord Stream natural gas supplies. One notable name, Siemens AG ADR (SIEGY), has experienced significant fluctuations in its share price over the past decade, as seen in the attached long-term point-and-figure chart. However, Siemens’ recent performance is noteworthy, particularly with its move into the Favored zone of the SIA International ADR Index Report, a signal of relative strength. Shares of Siemens have recently rallied toward resistance at $110.35, forming a triple and spread double top (bullish catapult) on the point-and-figure chart (highlighted in green oval). If the $110 level is broken, the next level of resistance is projected at $126.77, based on a vertical point-and-figure count from the recent consolidation range. On the downside, support appears strong at $98.00 and $92.35, both long-term levels dating back to 2015 and the start of the Euromaidan revolution.
The next chart shows a monthly candlestick view covering the period from 2005 to 2025, offering a comprehensive look at 20 years of trading. In this chart, we see a downtrend line across a series of lower lows, but a marked change in the past year (highlighted by the green circle), suggesting a potential breakout on the long-term chart. The SMAX score for Siemens is currently 9/10, a strong relative strength reading compared to other asset classes. Support on the monthly candlestick chart also highlights the $130 level as a key area to watch, should the rally continue. A final observation is the striking similarity between this chart and the Poland ETF chart discussed in today’s Equity Leaders Weekly. Does the potential for peace in Ukraine, as presented in the newsletter, apply to Siemens as well? Could this signal a broader recovery for Europe, and Germany in particular? Siemens will certainly be an interesting stock to monitor as the European situation evolves, especially in terms of intermarket technical analysis.
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