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by Darius Anucauskas

Will Adidas AG Stock Go For Another Higher High?

After the sharp decline that Adidas AG stock (ETR: ADS) experienced in the period between mid-February and mid-March, it managed to recover more than 70% of the losses. The share price is still below this year’s opening price of 290.50, but it looks like that ADS is on the right track of trying to at least break even for the year. We can see that the stock is still balancing comfortably above a medium-term upside support line drawn from the low of March 17th. That said, the stock is still struggling to bypass the high of last week, at 273.00. In order to get excited about higher areas, we would prefer to wait for a push above that hurdle first, hence why we will take a cautiously bullish approach for now.

A strong move above the aforementioned hurdle, at 273.00, may interest more buyers, as such a move would confirm a forthcoming higher high. ADS could then travel to the 280.00 zone, which is near the low of February 21st, where the stock might get a temporary hold-up. If the share price fails to move above that zone straight away, this could lead to a small correction. However, if ADS remains above the previously-discussed 273.00 hurdle, that may spark interest among new buyers, who could help lift the stock up again. If this time the share price is able to climb above the 280.00 barrier, that would confirm another higher high and potentially set the stage for a push to the 295.00 level, marked by the highest point of February.

The RSI and the MACD, both seem to be pointing higher, at the moment. In addition to that, the RSI is above 50 and the MACD is above zero and its trigger line. The oscillators seem to support the above-discussed scenario, as both are indicating increasing upside price momentum.

Alternatively, in order to abandon the upside scenario, a break of the aforementioned upside line would be needed. In addition to that, if the price falls below the 256.00 zone, marked by the low of September 8th, that could just strengthen the down-move in the short run. The stock may then travel to the 250.00 obstacle, a break of which might clear the way to the 240.00 area, marked by the low of August 7th. ADS may stall there for a bit, but if there are still no taker of the stock at that price, that may trigger another slide, possibly sending ADS to the 231.00 level, marked near the lows of July 10th and 31st.

Adidas-Daily

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