Despite declining heavily between the end of February and mid-March, the Continental AG stock (ETR: CON) managed to recover a decent amount of losses made during that period. The share managed to hit the resistance area near the 101.00 mark in the beginning of June, but failed to attract more buying interest and reversed south again. Although it is now trading in the red for the month of June, CON continues to float above its short-term tentative upside support line taken from the low of March 19th. If the stock keeps on balancing above that upside line, this may hold the positivity intact.
If CON manages to move further away from the aforementioned upside line and climbs above the 90.70 barrier, marked near the highs of June 16th and 23rd, that may invite some new buyers into the game. Such a move could clear up the path towards the next potential resistance area, at 96.76, marked by the inside swing low of June 8th. The share price might stall there temporarily, as it may also test the 200-day EMA, which could provide additional resistance. That said, if the buyers still find CON attractive at that price, that might lead to a further uprise, possibly bringing the stock to the current highest point of June, at 100.80.
Both of our oscillators suggest that we should stay a bit cautious and wait for a better signal of the next directional move. The RSI is still hugging 50 and the MACD, despite being above zero, is running below its trigger line.
Alternatively, if the previously-discussed upside line breaks and the price falls below the 83.12 hurdle, marked by the current lowest point of June, that would confirm a forthcoming lower low. Such a move might spook some new investors from entering, causing the stock to slide even further. CON could then travel to the 76.84 obstacle, a break of which may set the stage for a move to the 68.76 level, marked by the lowest point of May.
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