Looking at the technical picture of the Osram Licht AG stock (ETR: OSR) on the 4-hour chart, we can see that the price has fallen again below its 200 EMA, which may spook potential new investors from entering any time soon. On February 12th, after the share price hit the area near the 48-euro mark, it reversed south and continues to drift in that direction, while trading below a short-term downside resistance line taken from the high of February 21st. For now, we will remain sceptical about any advances, unless those are temporary corrections, before another decline.
If the stock continues to slide, it may easily end up testing the 42.70 zone, which is the low of December 27th, 2019. Around there the share price might get a hold-up, or even retrace back up a bit. However, if OSR remains below the 44.65 barrier, which is the low of March 9th, we could see another slide. If this time the 42.70 hurdle gets broken, this could clear the way for a move to the 41.06 level, marked by the highest point of October 2019.
Our oscillators, the RSI and the MACD, seem to be in support of the above-discussed scenario. The RSI continues to fluctuate below 50 and the MACD is pointing lower. In addition to that, the MACD is also below zero and its trigger lines, which does not give confidence for the buyers.
Alternatively, if the by any chance the share price gets pushed back above the 44.94 hurdle and the 200 EMA, that’s when we will for some higher areas, as such a move may pave the way for a larger correction. OSR could then drift to the 45.79 zone, which if fails to withstand the buying pressure and breaks, might lead to a test of the 46.78 level, marked by an intraday swing high from yesterday. Slightly above that level runs the aforementioned downside line, which may provide additional resistance for the stock.
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