Should You Buy SAP After Its Price Drop?

SAP has broken down from an upward trend with high volume.
The price decline has stalled around the resistance level at 235. The volume profile shows a sharp drop in trading activity at this level when prices approach from both below and above, making this a significant resistance zone.

There are no reversal formations as the price exits the trend.

The price is recovering, but without strong volume. Moreover, the negative volume balance further weakens the stock. The same applies when prices are just below a green cloud in Ichimoku.

From a fundamental perspective, the decline likely stems from concerns that SAP was overbought, combined with weakness in U.S. tech stocks. However, SAP is a European company poised to benefit from increased defense spending. These funds are not only for weapons and ammunition but also for innovation, data security, cyber warfare, infrastructure, and more.

I have chosen to reallocate some of my U.S. tech holdings into European investments and have bought SAP.

Always conduct your own research and assessment before making buy or sell decisions.