Siemens Stock: Is the Year-End Rally Coming?

Last Updated: 24. November 2023By

If you have been following news about the Siemens company, you have been reading numerous positive reports lately. The Royal Bank of Canada, Goldman Sachs and Deutsche Bank Research have expressed a favorable opinion on the development of the Munich-based electronics company.

The sale of Siemens Energy was a gold mine! One of the greatest successes in Siemens‘ more recent history was undoubtedly the spin-off of the subsidiary Siemens Energy in 2020, which despite strong demand has been reporting losses and has not been able to get out of the negative headlines. On the other hand, the parent company has benefited from the separation. Although revenues have fallen significantly since the sale in 2020, the profits remained almost unchanged. This means, conversely, that the profitability has increased.

Siemens corporate development; Source:

Siemens continued its positive development last week by surprising with record profits. The profit in the 2021/22 fiscal year was 8.5 billion euros, double that of the previous year. Despite challenges posed by the Ukraine war and ongoing problems in the China business, the company recorded an 11% increase in revenues to 77.8 billion euros, mainly driven by the industrial activities, which recorded an 11% increase in profits to 11.4 billion euros.

Notable gaps in the chart The stock reached a new all-time high in June, but then dropped significantly. Thanks to the subsequent price recovery, the Siemens share could be a long setup in the context of a possible year-end rally. Use support and resistance, which result from the gaps drawn in the chart, for trigger and stop loss.

Siemens share (ISIN DE0007236101) โ€“ 1 year in daily chart; Source:

Conclusion The Siemens share could soon be back at its all-time high! If the lower yellow line is breached, however, the year-end rally is likely to take place without it.