Rheinmetall is breaking out

After the NATO news of yesterday, officially confirming the "3.5% of GDP plus an additional 1.5% for joint NATO capabilities" defense spending rule, Rheinmetall is finally regaining momentum, breaking out with a strong +4% move this morning.

The levels on this chart have been historic tops and bottoms, which tend to act as support and resistance levels during movements.

Let's take a closer look 🔎

• There has been a strong upwards move, breaking over the previous consolidation zone of 1745 - 1755 euro.
• There's a clear peak in volume during this move, which is an important signal confirmation.
• The price broke over all EMAs (20/50/100/200) in one clear move, with volume, which is a clear indicator of the trend shifting back to a bullish trend.
• And of course, the fundamentals I discussed in my previous post.

I expect the historic resistance at around 1845 euro to be the next resistance again. Where it will consolidate a bit, possibly retracing the 1750 euro support one last time, before breaking over the elusive 2000 euro line.

GLTA