Siemens AG Trades On the Edge As German Manufacturing Continues to Contract

(This is an excerpt from an article I originally published on Seeking Alpha on May 24, 2012. Click here to read the entire piece.)

German industrial powerhouse Siemens AG (SI) is trading on the edge of a major breakdown. {snip}


Siemens trades on the edge of major and critical support
Siemens trades on the edge of major and critical support


Siemens has narrowly escaped a major breakdown twice in the past week
Siemens has narrowly escaped a major breakdown twice in the past week

Source: FreeStockCharts.com

With Thursday’s very poor German manufacturing numbers, I highly doubt Siemens can avoid a plunge through support for much longer. Reuters reported that the Markit’s manufacturing Purchasing Managers Index (PMI) dropped to 45.0 for May from last month’s 46.2. Anything below 50 signals contraction. This monthly contraction is Germany’s worst since June, 2009. New orders and new export orders recorded their eleventh month in a row in contractionary territory.

{snip}

Be careful out there!

(This is an excerpt from an article I originally published on Seeking Alpha on May 24, 2012. Click here to read the entire piece.)

Full disclosure: no positions

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