Aegon N.V. (AMS: AGN) is a multinational insurance company headquartered in the Hague, Netherlands and listed on the Euronext Amsterdam exchange. In the end February, together with the rest of the market, AGN took a beating and lost around half of its value, if we compare it to where it was at the beginning of this year. But after the stock hit the area near the 1.550 hurdle, the price reversed back up again and today it is finally trading slightly above a medium-term downside resistance line drawn from the high of February 12th. Also, the share price is still moving above a medium-term upside support line taken from the low of March 16th, which may support the upside scenario. At the same time, today, the stock is floating fractionally above one of its key resistance areas, at 2.707. If AGN eventually closes a daily candle above that downside line and also above the 2.707 barrier, marked by the inside swing low of July 20th, that could increase the stock’s chances of climbing further north.
A further push above the aforementioned 2.707 hurdle may invite a few more investors to jump into the action and potentially drive the stock higher. AGN could move to the highest point of July, at 2.885, where it may find a bit of resistance. That said, if the buyers are still feeling a bit more comfortable, they might lift the share price above the highest point of July and set sail towards the highest point of June, at 3.157.
Looking at our oscillators on our daily chart we can see that both are somewhat in support of the above-discussed scenario. If the MACD is currently on the flat side, coinciding with zero and trigger lines, the RSI is pointing slightly to the upside, while balancing above 50. At the moment, the RSI indicates a rising upside price momentum, which is currently in-line with our somewhat-bullish approach.
In order to abandon the upside scenario, we would need to see the share price sliding back below the previously discussed downside line and falling below the aforementioned upside support line. To strengthen the downside scenario, we would like to see a drop below the lowest point of July, at 2.471, as well. Such a move may open the door for a move to the 2.312 obstacle, a break of which might set the stage for a drop to the 2.149 level, marked by the low of May 22nd.
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