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The week beginning Monday, the 2^nd May is Week 18 as per ISO numbering convention of the weeks of a year.

Country in focus:

This week we look at the Stocks from Europe in STOXX 600 index.

Stock/ETF in focus:

Specific Stock in focus is DiaSorin S.p.A. (Ticker: DIA.MI), in the Health Care industry. European health care stocks, in general, is showing very strong seasonality for Week 18 onwards.

Trade Direction:

BULLISH, Seasonality study for last 10 years reveal 90% probability of success in a BUY (LONG) trade.

Overview:

DiaSorin S.p.A. develops, manufactures, and distributes immunodiagnostics and molecular diagnostics testing kits in Europe, Africa, North America, Central and South America, the Asia Pacific, and China. The company provides various immunodiagnostic LIAISON platforms, including LIAISON XS, LIAISON XL, and LIAISON XL LAS; and molecular diagnostics platform comprising of LIAISON MDX for use in the amplification of nucleic acids to diagnose viral infections through the identification of virus in patient's biological sample. It has partnership agreements with QIAGEN for diagnostic solution for Latent Tuberculosis detection; TTP for the development of molecular Point-of-Care solution; and MeMed for the launch of a test differentiating between viral and bacterial infections. The company was founded in 1968 and is headquartered in Saluggia, Italy.

Fundamentals:

52-week range        113.65 - 208.80

Avg. volume             160,704

Market cap               6.842B

PE ratio (TTM)         23.16

EPS (TTM)                 5.40

1y target est imate 154.75

Current trading price:

As of Friday close of 29^th April 2022, the stock was trading at 125.05.

SEASONALITY:

The stock demonstrated strong SEASONAL move in week 18 of the year, here are some of the details of its SEASONAL behaviour:

• In 9 out of last 10 years in week 18, the stock was bullish with average move up (AMU) of 14.03% and average move down (AMD) of 2.37% for an average holding time (ADH) of 45 days.
• If 1,000 stocks were bought in the beginning of week 18 every year for last 10 years, then a trader would have had a Gross Profit of EUR116,170, Gross Loss of EUR2,300, making a Total Net Profit of EUR113,870.
• In those 10 years, the Largest Win was EUR40,600, Largest Loss is EUR2,300, the Average profit/trade being EUR11,390.
• The average Reward-Risk Ratio (RRR) in those trades were about 51:1.

Trade Structure

We would trade the Stock as CFD, as follows:

Charts:

Summary report extract:

Trade Performance (Single Stock/ETF/Index, non-leveraged): 2012-2021:

Histogram:

Latest event candlestick chart:

Further Information about trading applications:

Please visit the following URL for more information on various trading applications from Sapphire Capitals which are designed to deliver high probability trading opportunities for swing trading as well as for intraday trading:

https://www.sapphirecapitals.com/pages/swing-trading-stock-seasonality-strategy/

https://www.sapphirecapitals.com/pages/swing-trading-stock-price-action-strategy/

https://www.sapphirecapitals.com/pages/swing-trading-volume-spike-stock-trading-strategy/

https://www.sapphirecapitals.com/pages/day-trading-intraday-seasonality-trading/

Disclaimer:

Sapphire Private Assets (ABN: 34 613 892 023, trading as Sapphire Capitals) is not a broker or a financial adviser but an education and research organisation; we provide training and tools for traders and DIY fund managers for trading in global financial markets. The contents of the blog have been produced by using technical analysis and trading applications developed by Sapphire Capitals for the Stock and ETF traded worldwide. The contents of this blog are intended for education and research purposes only and is not a recommendation or solicitation to invest in any Stock or ETF.

For more details, please visit www.sapphirecapitals.com/Disclaimer.