숏

Adidas - Outlook downgrade supports a bearish thesis

업데이트됨

Adidas is another company confirming what we laid out some time ago - a trouble brewing during the current earning season, supporting our notion about the stock market progressing in the second stage of the downtrend. That being said, the company reported its quarterly earnings, after which the stock fell approximately 10%. The report highlighted deteriorating demand and adjustment of the outlook for the rest of 2022 while also pointing out a build-up in inventories. We expect the same trend to continue among other companies and strengthen during the next earning season concerning Q4 2022. Therefore, we voice a word of caution to investors as this will lead the market slowly but surely into the 3rd stage of the bear market.

Illustration 1.01

Moving averages continue to reflect the bearish conditions on the daily chart of Adidas stock.

Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish but also reaching oversold levels for the short term.

Illustration 1.02

The weekly chart of Adidas also shows bearish conditions between two moving averages. However, the price deviated too far from the 20-week SMA, making a case for a short-term bounce toward it.

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish but also reaching oversold levels for the short term.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

액티브 트레이드

Adidas stock erases another 5% of its value after it announced the termination of partnership with Kanye West; the company will cease the production of Yeezy branded products.