Borussia Dortmund GmbH & Co.KGaA (ETR: BVB) started appearing in the news lately, but not due to its accomplishments on the football field, but from the business side. The company recently signed a partnership with BetMGM, which is one of the first US betting companies, which is part of the MGM Resorts International (NYSE: MGM). This “friendship” will help BetMGM to have greater exposure in Europe and to be able to show live Bundesliga matches through their website and application. For BVB this is mainly an extra cash injection and to increase its popularity abroad, mainly in the US, which could help strike new deals.
The technical picture of the Borussia Dortmund GmbH & Co.KGaA stock (ETR: BVB) on our daily chart shows the current price structure to be of higher lows. Also, the stock is trading above all of its EMAs, which could be seen as a positive and may attract more buyers. However, in order to attract more buying interest, a daily close above the 6-euro mark would be required. Until then, we will stay somewhat positive with the near-term outlook.
If, eventually, the share price ends up moving through and staying above the 6.00 barrier, marked by the highest point of November 2020, that could strengthen the bullish case. BVB could then travel to the 6.28 hurdle, marked by the highest point of September 2020, where it may stall for a bit. Even if the share price retraces back down somewhat, as long as it continues to trade above that 6.00 area, the near-term outlook will remain positive. If the stock rises once again and this time breaks above the 6.26 obstacle, the next potential target might be the 6.71 level, marked by the highest point of June 2020, which could halt the upmove for a bit.
Although the RSI and the MACD are slightly pointing to the downside, the RSI continues to balance above 50 and the MACD is just fractionally below its trigger line, but well above zero. The two oscillators continue to show positive price momentum, which comes in line with the overall outlook discussed above.
Alternatively, if the previously mentioned upside line breaks and the stock slides below the 5.27 hurdle, marked by the low of February 26th, that could keep new buyers from entering for a while. BVB might drift to the lowest point of January and February, at 5.02, where it may slow down its move lower. However, if there are still no new buyers at that price, the stock could continue with its journey south, potentially aiming for the 4.58 level, marked by the inside swing high of October 26th, 2020.
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