Looking at the technical picture of the ABN Amro Bank NV stock (AMS: ABN) on our 4-hour chart, we can see that, from around mid-March, the share price has been trading in a range between the 11.19 and 12.18 levels, which mark the current lowest point of April and the highest point of March respectively. In order to consider the next short-term directional move, we would prefer to wait for a clear breakout through one of the sides of the range first. Hence our neutral approach for now.
A push through the 12.18 barrier, would confirm a forthcoming higher high and would also place the stock above the 200 EMA. Such a move may attract more buyers into the game, possibly helping the stock to drift further north. ABN could travel to the 12.67 obstacle, or to the 13.28 zone, marked by the high of February 16th, where a temporary hold-up might occur. If the buyers don’t stop there, the next potential aim could be at 13.81, which is the high of February 10th.
The RSI is pointing higher, while running above 50. The MACD is also aiming north, while sitting above zero and the signal line. The two indicators show positive price momentum, supporting the idea of seeing further advances.
Alternatively, if the stock breaks through the lower side of the range, at 11.19, this will confirm a forthcoming lower low and could clear the way for further declines. ABN may travel to the 10.65 obstacle, or to the next support area between the 10.04 and 10.10 hurdles, marked by the inside swing high of March 7th and an intraday swing low of march 8th respectively. However, if new buyers are still nowhere to be found, the possible support zone could be at 9.57, which is the low of march 8th.
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