RHM.DE Stock Today: January 23 Defense Pivot Triggers Selloff, Profit-Taking
Rheinmetall stock fell today as a defense stocks selloff followed a reported Trump policy shift that cooled sector sentiment in Germany. After a near 19% rise since Christmas, traders locked in gains. The price hovered around €1,790 with a range of €1,759 to €1,822 and RSI near 72. DAX liquidity stayed firm as volume ran above average. We see a classic technical consolidation setting up for RHM.DE after a strong run.
What triggered today’s pullback
German defense names weakened after a reported Trump policy shift raised questions about future procurement dynamics. The move sparked broad sector risk-off flows and hit sentiment in Frankfurt. Local media flagged the change and its potential market impact, which added to selling pressure in the morning session. See coverage on boerse.de.
Rheinmetall stock gained about 19% over one month, reaching a year high of €2,008 earlier. With RSI at 71.85 and stochastic readings near 90, many short-term holders took profits. Price traded near €1,790, between €1,759 and €1,822, on 348,717 shares versus a 216,468 average. That volume spike confirms the move and supports a near-term cooling phase.
Chart setup in focus
Momentum stayed stretched. RSI printed 71.85, while Williams %R at -11.44 and CCI at 168 signaled overbought conditions. Price sits just below the Bollinger upper band at €1,808.78, with ATR at €65.12 pointing to wide daily swings. MACD remains positive, so the dominant uptrend is intact even as a technical consolidation takes shape this week.
We map first support near the 200-day average at €1,718.77, then the 50-day at €1,642.55. Intraday support showed around €1,759. Initial resistance stands near €1,808 to €1,822, then €1,900. The major cap is the €2,008 year high. Rheinmetall stock likely chops within this range until momentum resets and buyers return on dips.
Valuation and fundamentals
Rheinmetall’s 2024 revenue grew about 36%, with strong operating momentum. Germany and European allies continue to upgrade equipment and ammunition, which supports order flow. Local press notes that short-term price swings often follow headlines and profit taking rather than changes to the backlog. For context on recent weakness, see Stuttgarter Zeitung.
Shares trade at 97x TTM earnings and 17.4x book, well above long-term averages. Margins are improving, but the multiple prices in strong growth. Our Stock Grade is B+ with a Buy tilt, while our company rating today is B Neutral due to valuation. Several German reports cite targets above €2,000, which can anchor buy-the-dip interest if support holds.
What to watch next
The next key date is 11 March 2026 for results. Investors will watch order intake, ammunition capacity, and guidance on European programs. Headline risk from US and EU policy remains high. Any confirmation or reversal of a Trump policy shift could swing sector multiples and drive a fast repricing of Rheinmetall stock this quarter.
Short-term traders can look for entries near €1,719 to €1,643 if momentum cools further. A close back above €1,808 to €1,822 would signal renewed strength. Manage risk with ATR-sized stops near €60 to €70. For investors, a staged approach can smooth volatility during technical consolidation while keeping exposure to long-term growth.
Final Thoughts
Rheinmetall stock is digesting a strong run, with sector pressure from a Trump policy shift and clear overbought readings pushing prices lower. The uptrend remains intact, but a reset toward €1,719 or even €1,643 would not surprise given ATR and stretched oscillators. Valuation is full at 97x earnings, so entries should be disciplined. We would track momentum around the €1,808 to €1,822 zone for signs of strength and watch the 11 March earnings for clues on orders, capacity, and guidance. Near-term volatility looks elevated, yet the long-term demand picture in Europe still supports a constructive view if key supports hold.
FAQs
Why did Rheinmetall stock drop today?
It fell as defense stocks sold off following a reported Trump policy shift that hit sector sentiment. After a near 19% post-Christmas rally and overbought signals, traders took profits. Volume ran above average, which confirmed the move and pointed to a short-term technical consolidation rather than a trend break.
Is the pullback a buy-the-dip opportunity?
Potentially, but levels matter. Watch support near €1,719 and €1,643. A rebound above €1,808 to €1,822 would suggest momentum is back. Valuation is rich at 97x earnings, so consider scaling in and using stops sized to recent ATR of roughly €60 to €70.
What are the key risks for Rheinmetall now?
Headline risk from US and EU policy shifts, timing of European procurement, and execution on capacity expansion are key. Valuation risk is also high after a strong run. A deeper risk-off move in defense stocks could drive further consolidation before long-term buyers step back in.
When is the next earnings date for Rheinmetall?
The company is scheduled to report on 11 March 2026. Investors will focus on order intake, ammunition and vehicle capacity, margin progress, and full-year guidance. These updates can reset expectations and may either confirm support levels or trigger another leg of volatility around the print.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
