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by Darius Anucauskas

BMW Drifting Within a Range

For the whole of 2018, the BMW AG stock (ETR: BMW) kept moving lower, but it was only at the end of that year, when BMW broke the fall and entered a range. Now the share price sits between the 68.80 and 74.75 levels, which continue to contain the price action since the first days of December. For now, we will remain neutral and keep monitoring certain key levels of resistance and support, before we examine the next directional move.

If eventually the upper bound of the range breaks, this could attract more investors into the action and push the stock further up. The next potential area of resistance could be seen at 76.36, marked by the high of November 14th. If it fails to withhold the price-acceleration, then BMW may continue traveling in the upwards direction, where its next destination could be around the 77.55 barrier, which is the peak of December 3rd.

Our oscillators are giving us some mixed signals, where the RSI is above 50, but showing signs of topping. The MACD is above zero but has now shifted below its trigger line by showing some signs of topping as well.

Alternatively, if the stock reverses and moves below the 72.90 support area, this might spook the buyers and BMW could travel lower, to test the 71.15 obstacle, which marks the high of February 15th. If investors do not see value in the stock even at that price, the share price could depreciate again, potentially sliding to the 70.00 hurdle, which is the low of February 19th. There could also be a possibility for the stock to fall lower, where the price might get held by the lower bound of the aforementioned range, at 68.80.

MBW 4hour


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