From around mid-June, the stock of the German Adidas AG (ETR: ADS) has been slightly on the flat side. Although there is a bit of positivity coming from the fact that the share price is still balancing above a short-term upside support line taken from the low of June 15th, ADS is still finding it hard to overcome the current high of July, at the 249.30 mark. In order to aim for higher areas, a break of that mark is needed. Until then, we will take a cautiously-bullish approach.
If the share price gets a boost and climbs above the aforementioned upside line, that may interest a few extra buyers to move into the stock. Such activity may help ADS travel to the 255.50 obstacle, or even the 261.60 zone, marked by the high of June 8th. The stock may get a temporary hold-up around there or correct slightly to the downside. That said, if ADS remains above the previously-mentioned 249.30 area, investors may take another chance to lift the stock. The share price might rise back to the 261.60 territory, which if breaks this time, could clear the way to the highest point of June, at 265.40.
Despite the RSI and the MACD being flat at the moment, the RSI is still above 50 and the MACD is fractionally above its trigger line, and well above zero. Such a picture supports the notion to wait for a break of the 249.30 hurdle first, in order to get a bit more comfortable with larger extensions to the upside in the near term.
Alternatively, in order to shift our attention to some lower areas, we would wait for the stock to break below the aforementioned short-term upside support line and then also fall below the 234.80 zone, marked by the lowest point of this week. If such a move occurs, new investors might get spooked temporarily from entering. ADS may then drift to the 228.70 area, which if fails to halt the slide and breaks, it could open the door to the next possible support level, at 222.70, which is the lowest point of June.
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