The technical picture of the French luxury goods company stock, Kering SA (EPA: KER), shows that recently it managed to overcome a short-term downside resistance line taken from the high of April 20th. The break happened on Monday, but since then the price has drifted slightly lower. That said, it remains above that downside line, which gives a bit of hope to the buyers. But, in order to get comfortable with any advances higher, we would prefer to wait for a break above the current high of this week, at 443.35 first, hence why we will stay somewhat bullish.
If, eventually, KER rises above the 443.35 barrier, this would confirm a forthcoming higher high and more buyers may step in. The stock could then travel to the 481.60 hurdle, marked by the high of April 30th, which might halt the acceleration. KER may even correct slightly lower. However, if the share price continues to float above the 443.35 zone, the buyers could make another attempt to lift the stock and if this time the 481.60 barrier breaks, the next potential resistance level might be seen at 512.80, marked by the highest point of April.
Although the RSI was recently seen balancing above 50, it has now shifted back fractionally below that threshold. The MACD is showing willingness to move higher, as it remains above its trigger line, but for now it is oscillating around zero. Both indicators seem to be in support of our cautious approach, at least for now.
On the other hand, if the share price suddenly fall back below the aforementioned downside line and also slides below the current low of May, at 405.10, this would confirm a forthcoming lower low and may temporarily spook new buyers from entering soon. KER might then drift to the 382.20 obstacle, a break of which could open the door for a move to the 348.50 level, marked by the lowest point of March and the current lowest point of this year.
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