Zalando - Downgrade pushes down the price -- Perfect entry point?

Company description

Zalando specializes in the online sale of fashion and shoes for a broad customer base. In addition to clothing and shoes, the range also includes accessories and beauty products. Zalando offers a variety of brands and products from different price segments.

In addition, Zalando has diversified into logistics and fulfillment services. The company develops solutions for the storage, shipping and returns processing of goods. Zalando operates its own logistics centers to ensure that orders are processed quickly and efficiently.
Another of Zalando's business areas is providing technology and platform services to other companies in the fashion and e-commerce sector. Zalando provides its infrastructure and technology so that other brands and retailers can offer their products on the Zalando platform.

Latest news

The news that is causing heavy losses today is a downgrade from Morgan Stanley:

MORGAN STANLEY REDUCES ZALANDO TO 'EQUAL-WEIGHT' (OVERWEIGHT) - TARGET 24 (28) EUR

This massive downgrade caused significant losses in the first few minutes, but these were already somewhat offset in the first hour of trading. Zalando's share price has thus reached a possible entry point. In the medium term, my opinion does not change because Zalando could double in the medium term.

Chart technical outlook

In the short term, it is now of course necessary to find a possible long entry. Today's price range of around EUR 20.50 to 21 is actually suitable for this. This is where the Fibonacci retracement and projection coincide. If there are clear buyers here by the end of the day, I am planning a long position that should be implemented today or in the next few days at the latest.

This position is to be held for several weeks. I assume that Zalando could well prevail despite the possible weak stock market phase. I like the chart structure in combination with the fundamental data, which has recently led to a significant increase in profits and sales, very much for a long position.

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