The technical picture of the Airbus SE stock (EPA: AIR) shows the price is moving sideways, with signs of coiling. AIR is currently stuck between two short-term lines, a downside one taken from the high of February 25th and an upside one drawn from the low of January 29th. As long as the share price remains in between the two lines, we will remain neutral.
Given that the prevailing trend is to the upside, there is a chance to see a move higher, especially if the aforementioned downside line breaks as well. However, to get slightly more comfortable with larger extensions to the upside, a push above the 103.36 barrier would be needed. That barrier marks the highest point of February and if the stock rises above it, this will confirm a forthcoming higher high. We will then aim for the 105.84 obstacle, a break of which could set the stage for a test of the 111.42 level, marked by the high of March 5th, 2020.
The RSI continues to oscillate around 50, with no clear indication for the next direction. The MACD, although sitting fractionally above zero, but below the trigger, is pointing slightly lower. The unclear picture on our indicators on the 4-hour chart comes inline with the idea mentioned above.
Alternatively, if the previously-discussed upside line breaks and the share price falls below the 95.11 hurdle, marked by the lows of February 26th and March 5th, that could spook new buyers from the arena for a while, as such a move may increase the stock’s chances of drifting further south. We will then aim for the 93.35 obstacle, or for the 92.05 zone, marked by the inside swing high of February 18th. Around there, AIR might test the 200 EMA as well, which could provide a temporary hold-up. That said, if there are still no new buyers lined up to buy the stock at that price area, this might result in further declines. We will then aim for the 89.52 level, marked by the lows of February 12th, 18th and 19th.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.