Can The Adidas Stock Make Another Move Up? | Technical Analysis
The technical picture of the Adidas AG (ETR: ADS) stock on our 4-hour chart shows that on June 2nd, the share price broke above a short-term tentative downside resistance line drawn from the high of March 31st. However, after finding resistance the next day, at 191.10, the stock started correcting lower. If ADS is able to remain somewhere above the previously-mentioned downside line, we will stay somewhat positive, at least with the near-term outlook.
As mentioned above, a rebound from the area close to the aforementioned downside line, may help attract more buyers into the game. The stock could then rise back to the current highest point of June, reached on the 3rd of the month, at 191.10. If this time that obstacle surrenders and breaks, this will confirm a forthcoming higher high, possibly clearing the way for ADS to go and test the 200.65 level, which is the highest point of May.
The RSI is pointing lower but continues to run above 50. The MACD had recently dropped slightly below the signal line, but remains well above zero. Overall, the two indicators show positive price momentum, supporting the idea mentioned above.
Alternatively, if the stock drops back below the previously discussed downside line and pushes through the 181.80 hurdle, marked by the current lowest point of June, reached on the 1st day of the month, such a move may spook some new buyers from the arena for a while. ADS could then travel to the 177.00 obstacle, or even to the 172.50 zone, marked by the inside swing high of May 25th. If the slide continues, the next potential aim might be at 165.80, which is the lowest point of May.
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