Infineon has now reached and activated our Fibonacci sell/short zone.
In our previous analysis, we outlined the long-term outlook for this stock and identified an overshooting wave B (orange wave B). For this wave, we defined a Fibonacci zone where we expect the stock to lose its current bullish momentum, which we consider unsustainable given Infineon’s current price action and structure.
Initially, this Fibonacci zone was defined between the following levels:
- 123.6% at $49.28
- 138.2% at $52.64
Based on the evolving structure, we decided to extend this zone to allow this stock to move a bit more to the upside before the short-term bullish momentum fades and the market resumes its broader bearish corrective structure. The updated Fibonacci sell/short zone is now defined at:
- 123.6% at $49.28
- 138.2% at $52.64
- 161.8% at $58.11
We expect the 161.8% level to act as the final area where the current unsustainable bullish momentum exhausts and transitions into new bearish movement. This entire zone is therefore identified as a sell/shorting area.
This zone has now officially been activated, as Infineon is currently trading within it at $53.35. If this zone holds, we expect the market to initiate bearish sell-offs, moving toward our long-term defined Fibonacci retracement zone.
That retracement zone is defined at:
- 50% at $22.09
- 61.8% at $16.96
- 78.6% at $9.65
From our perspective, this zone represents the potential completion area for the sell/short setup. At that stage, we plan to close short positions and begin repositioning with buy orders to accumulate the stock.
For now, the currently defined sell/short zone remains active and needs to be validated over the coming days and weeks.
If any structural changes occur, we will update you immediately.
Kind regards,
Monalytics
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