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by Darius Anucauskas

Henkel AG Stock is “Cleaning” its Path Higher

Looking at the technical picture of the Henkel AG stock (ETR: HEN3), we see that the medium-term downside resistance line taken from the high of December 3rd, has finally been broken and the share price got close to the June high, at 88.62.  At the same time, the stock is trading above an upside support line taken from the lowest point of June. For now, we will stay positive and aim for higher areas, especially if Henkel stock breaks above the June high.

A strong push higher and a break above the 88.62 barrier could invite more buyers into the game, who could help the price to accelerate further. This is when we will aim for the 89.76 obstacle, which is the high of May 7th. That area could temporarily stall the share price, or even send it back down for a small correction. But as long as HEN3 stays above both the aforementioned upside and downside lines, we will remain positive over its outlook, at least in the short run. Another strong upmove could eventually lift the share price above the 89.76 hurdle and send it to the next possible resistance level, at 91.80, marked by the highest point of May. This is also where HEN3 could meet the 200-day EMA, which may provide additional resistance.

Our oscillators, the RSI and the MACD, are in support of the above discussed scenario. The RSI is pointing to the upside, sitting above 50. The MACD has just moved fractionally above zero and its trigger line, and is also now pointing to the upside. This makes us believe we could see a bit more upside, at least in the short run.

Alternatively, in order to shift our view to the downside, we will wait until we see a clear break back below the downside resistance line and then the upside support line. Such a move could spook new investors, potentially forcing the stock to slide to the 82.84 zone. That zone marks the low of June 27th, a break of which could send HEN3 further south, aiming for the lowest point of June, at 80.68.

Henkel AG daily


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