Looking at the technical picture of the Danone stock (EPA: BN) on the 4-hour chart, we notice that it keeps struggling to overcome the 62.32 barrier, marked near the lows of March 2nd, 3rd, 4th and 5th, and which is also the high of March 19th. This morning, BN tested that zone again, but got held by it. That said, the share price is still above a short-term upside support line taken from the low of March 24th. In order to examine higher areas, we need to see a daily close above the aforementioned barrier, at 62.32, hence why we will stay cautiously bullish, at least for now.
Eventually, if BN breaks and stays above the 62.32 hurdle, this could give new buyers a bit more confidence in entering the action. The stock may rise to the 64.82 barrier, marked by the high of March 20th. Initially, the share price might stall there for a bit, however if the buying-interest is still on the rise, this might drag BN further north, where the next resistance level could be seen around the 66.80 obstacle. That area is marked near the low of February 26th and near an intraday swing high of February 27th.
The RSI and the MACD are flat, at the time of writing. However, the RSI remains above 50 and the MACD is above zero, while also balancing above its trigger line. Both indicators support the idea of taking a cautiously-bullish stance, at least for now.
Alternatively, to get comfortable with lower areas, we would like to see a break of the aforementioned upside line. Such a move might signal a change in the short-term trend and open the door to some further declines. We will then aim for the 56.34 hurdle, a break of which may send the share price to the 55.24 area, marked by the current lowest point of April. BN could get halted around there, or even rebound slightly. That said, if the buyers are still not feeling confident enough to push the stock higher again, this may result in another slide, possibly overcoming the 55.24 obstacle. The next potential support zone to examine may be around the 53.40 level, marked by the low of March 24th.
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.