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by Darius Anucauskas

RWE Stock Continues To Trade Within A Rising Channel

After finding support in the end of March, near the psychological 20-euro mark, the stock of the Rheinisch-Westfälisches Elektrizitätswerk AG (ETR: RWE) started moving higher again. The share price keeps on pushing higher in an organised fashion, within a rising channel pattern. Last week, RWE found strong resistance near the 27.32 barrier, which, today, continues to keep the price from moving higher as well. If that area is too much for the buyers to overcome right now, we may see a small correction first. Overall though, we will remain bullish, at least for now.

As mentioned above, if the 27.32 continues to provide descent resistance for a while, the share price could move back down a bit, maybe even testing the lower side of the aforementioned rising channel. If that side stays intact, new buyers may re-enter the game and push the stock back to the 27.32 hurdle. If this time that hurdle surrenders and breaks, the next potential resistance area to consider might be near the 28.91 zone, which is the high of March 11th.

Looking at our oscillators, we can see that, overall, they are in support of the above-mentioned scenario. The MACD continues to point higher, while running above zero and its trigger line. The RSI, although above 50 still, is currently pointing slightly to the downside, what may come inline with the idea of a small setback in the short run, before another leg of buying.

Alternatively, if the lower side of the channel breaks and the share price slides below the 25.32 zone, which is the low of April 29th, this may clear the path to some lower areas. We will then target the 24.47 obstacle, a break of which could set the stage for a re-visit of the 23.10 level, marked by the low of April 22nd.

RWE-Daily

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