The technical picture of the Bayer AG stock (ETR: BAYN) on our daily chart shows that, from around the beginning of December, the share price is moving steadily to the upside, within a short-term rising channel pattern. After a recent test of the upper bound of that channel, the stock drifted back down, however, it managed to stay above the 200-day EMA, what could be seen as a positive sign. As long as BAYN continues to trade inside that pattern, we will remain positive with the near-term outlook.
Another push higher might bring the share price to the current highest point of February, at 56.77, or to the upper bound of the channel. That area may provide some initial hold-up, possibly even forcing the stock to drift back down a bit. However, if the share price continues to trade inside the aforementioned pattern, this could attract new buyers again. BAYN could then rise to the 56.77 hurdle, or even to the 57.72 zone, marked by the highest point of September 2020. Around there, the stock may once again test the upper side of the rising channel.
The RSI and the MACD continue to point slightly higher. In addition to that, the RSI is still running above 50 and the MACD remains above zero and its trigger line. The two oscillators seem to be in support of the above-discussed scenario, as they show rising upside price momentum.
In order for new buyers to get spooked, at least temporarily, the share price would have to break the lower side of the previously-mentioned pattern and then fall below the 51.92 zone, marked by the high of February 3rd. BAYN could then slide to the 49.55 area, a break of which might set the stage for a push to the 46.95 level, marked by the current lowest point of this year.
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