The stock of the French multinational luxury brand company Kering (EPA: KER) drifted lower from the start of the year. However, the price recently found support near the 486.60 level, marked by the high of October 24th. Also, around there, KER tested its medium-term upside support line drawn from the low of August 28th, 2019, which helped keep the share price from moving further down. Given all that, the stock may try to recover some more of its losses, hence why we will take a somewhat bullish approach, at least for now.
If KER makes its way above yesterday’s high, at 523.40, this will create a new higher high and place the stock back above the 21 EMA on the 4-hour chart. Such an action might help attract more buyer interest. The share price may then travel to the 539.40 hurdle, marked by the high of February 24th, a break of which may set the stage for a move to the 555.40 level. That level marks the low of February 21st.
Looking at our oscillators, the RSI and the MACD, both continue pointing higher, after bottoming recently. The RSI is just slightly below 50 and the MACD had recently moved from its lows and now sits above its trigger line. The two indicators seem to be in support of the idea of seeing some more upside.
Alternatively, if the previously-mentioned upside line breaks and the share price slides below the lowest point of February, at 486.60, this could force a few investors to liquidate some of their existing positions. That’s when the stock may drift to the 466.30 zone, a break of which may clear the path to the 453.70 level, marked by the low of October 10th, 2019.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.