The technical picture of the Danone SA (EPA: BN) stock on our daily shows that the stock has been slowly climbing, after reversing north in the beginning of March. At the same time the share price is trading above a short-term tentative upside support line drawn from the low of March 8th and also sitting above all the EMAs. Although there are indications that a further move north could be possible, in order to get a bit more comfortable with that idea, we would prefer to wait a breakout above a key resistance area between the 57.60 and 58.38 levels. Those levels mark the highs of February 23rd and January 13th respectively.
Such a breakout will confirm a forthcoming higher high, potentially clearing the way towards the 60.57 hurdle, marked near the highs of September 9th and 14th, 2021. Initially, BN might get a hold-up around there, however, if the stock remains under buying pressure, this may result in a further move higher, where the next possible target could be at 62.82, which is the highest point of September 2021.
The RSI and the MACD are pointing higher. Additionally, the RSI is above 50 and the MACD is running above zero and the signal line. The two oscillators indicate positive price momentum, supporting the scenario mentioned above.
Alternatively, if the stock breaks below the previously discussed upside line, that might change the direction of the current trend, possibly spooking some buyers from the arena and opening the door to some lower areas. BN may drift to the 50.74 obstacle, or to the 49.46 hurdle, marked by the current lowest point of April. If the slide continues, the next target could be at 46.48, which is the lowest point of March.
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