BMW (BMW): Navigating Through Uncertainty in the Auto Market

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The German automotive industry is currently facing significant challenges, from rising production costs and the transition to electric vehicles to increased competition from China. Despite these hurdles, we believe that most of the negative factors are already priced into the market.

From a technical perspective, we’re zooming out to get a broader view of BMW. Ignoring the COVID-19 dip, BMW has been ranging between 55€ and 113€ for an extended period. We anticipate that this range will continue, as markets tend to range 70% of the time. Right now, BMW is at a critical level, either bottoming out for the fourth time or, more likely, preparing to break below and collect the sell-side liquidity that has accumulated over the past three years.

Our plan is simple: We’re monitoring this closely, with alerts set to notify us if the stock dips below this level. Should this occur, we’re looking at a potential entry near 62€. We will update you with our strategy once this scenario unfolds.