Bayer AG is a German multinational pharmaceutical and biotechnology company and is one of the largest pharmaceutical companies and biomedical companies in the world. Headquartered in Leverkusen, Bayer's areas of business include: pharmaceuticals, consumer healthcare products, agricultural chemicals, seeds and biotechnology products. The company is a component of the EURO STOXX 50 stock market index. Bayer was founded in 1863 in Barmen as a partnership between dye salesman Friedrich Bayer and dyer Friedrich Weskott.
The technical picture on the weekly chart reveals a period of falling and low volatility. This can be seen in the extremely low level of the Bollinger bandwidth. Low volatility is where trends are born, a well known saying which can well be applied to this stock.
The long term Fibonacci downside projection measured from the high of 143.87 on 10th April 2015 and the low of 83.97 on the 27th May 2015 gives us the 100% downside projection level at 24.07 which should be tough to break. The current price is Euro 27.345. The likelyhood of a strong recovery from current levels is high. Initial resistance can be expected at 36.88 (Fibo 78.6% downside projection) and thereafter at 46.95 (Fibo 61.8% downside projection).
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