With impressive history and exceptional fundamental characteristics, Adidas AG holds optimistic outlook for future days.
The stock has performed extremely well during the last 5 years with a price gain of almost 250%!
What investors really like to see is a double digit ROE and ADS.DE has exactly that, strong performance of 26.69%, P/E is 30.81 and ROA is 10.90%
On top of that investors receive a Dividend Yield of 1.29%
Today Adidas is making a new high reading at 268.6 for the first time in 10 years.
Let´s see how the stock behaves at these new ATH levels. 264 is an important area
There is no doubt that ADS.DE has a great track record as both a company and as a stock.
The only question remaining is should I buy now, or should I buy later?
From a Fundamental Analysis point of view and if you are Value Investor and you have what you are looking for in a specific stock, you can buy at any time you like, but even Value investors like to time their trades well.
In this particular case, Technical Analysis offers help with regards to entry points from a timing optimization aspect.
Recently, price movement of the stock has taken a different direction in comparison to the RSI, which is one of the most used trend reversal indicators.
In the chart above we notice a divergence on the D1 time frame. Many traders use the RSI in a way where they look for divergences between the RSI and the stock price.
On H4 time frame we have Triple Top, another trend reversal technical pattern and RSI in overbought territory.
Source, TeleTrader
