After bottoming near the 2.80-euro mark in mid-March and mid-May, the stock of Commerzbank (ETR: CBK) started climbing back up and is now trading near its 200-day EMA again. The share price is currently getting held by the 4.77 barrier from moving higher. That barrier marks the highest point of June. At the same time, CBK is balancing above a short-term upside support line taken from the low of May 14th. Although the stock has a good chance of drifting higher, we would prefer to wait for a break above June’s high first, in order to get comfortable with larger extensions to the upside. Hence our somewhat-positive approach for now.
If eventually we do see CBK breaking above the June high, at 4.77, that would confirm a forthcoming higher high, potentially inviting a few more buyers into the game. The stock might then travel to the 5.01 obstacle, a break of which could set the stage for a test of the 5.30 level. That level marks the high of February 28th.
Although our oscillators on the daily chart are not pointing higher at the moment, the RSI is still above 50 and the MACD continues to run above zero and its trigger line. Both indicators seem to be supporting the above-discussed scenario, as both are still indicating positive price momentum.
Alternatively, if the share price breaks the aforementioned upside line and falls below the 4.21 hurdle, marked by the high of July 2nd, that could spook new investors from entering, as such a move may increase the stock’s chances of drifting further south. CBK might travel to the 4.02 zone, which if struggles to provide support and breaks, could clear the way to the 3.72 level. That level is marked near the lows of June 22nd and 25th.
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