Stocks of Allianz and BASF experiencing sudden drop - potential investment goldmine?
Allianz and BASF stocks plummet on the stock exchange – but panic selling could backfire.
Market turmoil reigns as China imposes counter-tariffs, causing a frenzy of heavy selling of German stocks. Allianz's stock dips as much as 8%, now down 4%, while BASF's stock plunges 7%, currently at a 4% deficit.
Is BASF's Stock a Golden Ticket?
Investors should remain calm amid the chaos, but why is there no hype around BASF's stock following peace plans for Ukraine and the special fund? Isn't BASF a prime contender to reap the benefits?
Today's market upheaval erased all the gains BASF's stock garnered since July last year. But this rapid panic might signal an opportunity for a major trend reversal, as BASF's stock has lost approximately 26% of its value in the last 20 days.
Though tariffs and recession fears can hurt chemical stocks, investing enthusiasts can capitalize on this volatile moment, but cautiously and with tight stops. Only once the situation becomes more favorable could this be a potentially lucrative buying opportunity, as reflected in the stock's quick recovery. About 3% of the sharp drop has already been recuperated.
But what about Allianz's stock?
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Allianz Stock – Riding the Rollercoaster?
Allianz's stock takes a nose dive, a rare occurrence with drops averaging 8%. Some investors have already taken advantage of the situation, but those who followed BÖRSE ONLINE's prediction knew a correction to the 50-day line was imminent. And that's just what happened today. The price plummeted below the 50-day line but was swiftly rescued.
Certainly, a global recession wouldn't bode well for Allianz. But investors continue to hold the stock, as the dividend payment is fast approaching. Only if the stock slips below the 200-day line, currently around 300 euros, should caution be exercised. Those holding substantial profits can still cash out partially. However, long-term investors with confidence in Allianz's stock and the courage to endure the coming market ride should consider purchasing a small tranche now, either at the 200-day line or at a new record high. This situation remains intact until the 200-day line is breached.
Investors should buckle up and brace for the wild ride of Allianz's stock and BASF's stock.
Additionally, read: Stock Market Crash: Will Central Banks Intervene Now? Then there could be a Fed Put
Disclosure of Conflicts of InterestThe majority shareholder and manager of the publisher Börsenmedien AG, Mr. Bernd Förtsch, holds direct and indirect positions in the following financial instruments mentioned in the publication, which may benefit from potential price developments resulting from the publication: Allianz, BASF.
- The current market chaos has led to a significant drop in BASF's stock, with a rapid decline of about 26% in the last 20 days, creating a potential opportunity for a trend reversal.
- Allianz's stock has also experienced a considerable drop, averaging 8%, but those who followed BÖRSE ONLINE's prediction knew a correction to the 50-day line was imminent, indicating a possible buying opportunity for long-term investors.
- Despite the current market volatility, investors should tread carefully and consider the potential risks, such as a global recession or further stock-market turmoil, before making any investing decisions in Allianz or BASF stocks.
- BASF, with its prime position and the upcoming peace plans for Ukraine and a special fund, might still be an attractive contender for investors looking for opportunities, despite the recent stock market reversals.
