Renault's stock has been falling, but the drop may slow down soon.
The price is testing a support level around €27. This level could hold the fall for a short time.
If the support holds, the price might climb toward €30.
Because of this, we suggest buying the Vontobel call warrant IP60V, which costs €0.30.
We expect the underlying share to reach €30, giving the warrant about a 50% profit.
The warrant will become worthless if the share falls below roughly €25.7, limiting the loss to about 25%.
We will keep monitoring the warrant and may update our advice later.
Tags:
Technical Analysis