Siemens Energy shares plunged by a massive 42% this week which erased €3 billion euro from the German company’s market value. At press time, the shares of Siemens Energy are priced at €7.48 and are up 9.26% from their previous close.
The German energy giant recently confirmed that it is in talks with the German government to get guarantees. According to reports, the guarantees which are sought by the energy firm amount to up to €15 billion and will allow it to sign new contracts.
However, the markets did not take this news well as Siemen Energy lost a whopping €3 billion from its market value. Furthermore, a deep analysis of the price chart also reveals that the shares of the German company have already been in a downtrend since June. As a result, they are currently trading 70% below their yearly peak of €24.7.
Siemens Energy’s wind division has not been performing well as the business lost around $2.5 billion in its third-quarter results. The management listed inflation, the signing of long-term fixed contracts, and the ongoing uncertainty in the world economy as the primary reasons for this disappointing performance.
The energy company claims that the wind division is expected to outperform its forecasts in 2024 as it works to solve problems related to the division. However, the tanking Siemens Energy share price is telling a different story.
Siemens Energy Share Price Forecast
The recent price action of ETR: ENR shows that the bulls have capitulated as the price plunged below the €10.25 support level. This downward acceleration has resulted in a price gap that was left back in June. There are strong chances for the bulls to target this gap in the coming months, as markets often tend to fill such gaps.
The breakdown under €10.25 has validated the bearish outlook for Siemens Energy share price and the price is now likely to see more downside in the coming weeks. However, not all hope is lost for the bulls as a reclaim of the €10.25 could likely flip the current bearish outlook for the stock.
