Looking at the technical picture of the Bayerische Motoren Werke AG (ETR: BMW) stock on our daily chart, we can see that yesterday, the share price jumped above all the EMAs, while continuing to trade above a short-term tentative upside support line drawn from the low of March 7th. Today, the stock is correcting back down a bit, however, if BMW can remain somewhere above that upside line, we will stay positive, at least with the near-term outlook.
If the stock continues to trade anywhere above the aforementioned upside line, we may class that move lower as a temporary correction, before another possible leg of buying. BMW could then make its way back to the 84.13 barrier, marked by the low of February 24th and the high of June 2nd. A failure of that barrier to hold, the next possible target might be at 87.48, or at 88.84, which is the high of February 24th.
The RSI is pointing slightly lower but remains above 50. The MACD is still pointing higher, while running above zero and the signal line. Overall, the two oscillators show positive price momentum, supporting the scenario discussed above.
Alternatively, if the stock breaks the previously discussed upside line and then drops below the 77.04 hurdle, marked by the low of May 23rd, that could temporarily spook the buyers from the arena. BMW might drift to the lowest point of May, at 73.99, a break of which may set the stage for a move to the psychological 70.00 level. That level marks the low of March 10th.
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