The development of the Steinhoff stock is currently very unspectacular, as there have been no major price changes for more than three months. The high volatility inherent in a penny stock makes for a high daily gain or a stronger daily loss here and there, but the bottom line is that there is a stalemate between bulls and bears.
Steinhoff stock moves below the 50-day line
From a chart perspective, however, the bears still have the advantage, as they manage to keep the stock below the 50-day line (EMA50). The central support, which goes back to a high from spring 2021, is located at 0.1400 euros. Should a break occur at this point, the downward momentum could accelerate. Then there is a threat of setbacks to the 2020 high at 0.1245 euros. If the bears still haven’t had enough, the corrections could also extend to the November low (2021) at 0.1050 euros.
When will there be new news?
In order to spark new stock price momentum, Steinhoff would have to present progress in reducing its immense interest and debt burden. In March, a landmark vote on a capital increase at the annual general meeting failed due to a stockholder veto. With the money, Steinhoff could have reduced its interest and debt burden and gained more leeway in refinancing. Around one billion euros a year in interest charges are still flowing to creditors for the debt capital previously granted.