Looking at the technical picture of the Danone SA stock (EPA: BN), it has been trading sideways from around mid-April. The share price continues to trade roughly between the 59.64 and 65.32 levels. Given that BN is not showing any willingness to exit the range yet, we will remain side-lined for now and continue observing the price action.
If BN breaks through the lower bound of the aforementioned range, at 59.64, such a move would confirm a forthcoming lower, and may spook new investors from entering any time soon. A drop below that 59.64 hurdle might increase the chances for a drop to the next possible support area, at 56.36, marked by the low of April 9th, where the share price may get halted temporarily. That said, if there is still not much interest in the stock at that price, it might slide further, possibly traveling towards the 53.42 level, marked by the low of March 24th.
Both of our indicators, the RSI and the MACD, are pointing slightly to the downside. In addition to that, the RSI continues to move below 50 from around the beginning of this week, which may be seen as a bearish indication. However, the MACD, although slightly below its trigger line, still remains fractionally above zero, which could support the idea of sticking to neutrality, for now.
If somehow BN gets a boost and breaks above the upper bound of the aforementioned range, at 65.32, that may strengthen the bullish case, potentially inviting more new investors into the playing field. The share price could rise to the 67.00 hurdle, a break of which might clear the way to the 69.44 level, marked by the high of February 26th.
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