Looking at the technical picture of the Christian Dior SE stock (EPA: CDI) on our daily chart, we can see that after hitting its all-time high in mid-August, at 725.50, the share price started losing ground and is now seen drifting lower. The stock is currently resting near the 626.50 support hurdle, marked by the current lowest point of August and near the highest point of April. There is a possibility to see some further weakness in the near-term, but we will get a bit more comfortable with that idea, if we see a price-drop below the above-mentioned support hurdle first.
If, eventually, that drop happens, this would confirm a forthcoming lower low, potentially clearing the way towards the lowest point of May, at 597.00, where a temporary hold-up might happen. Even if CDI rebounds from that area and moves back up, as long as it stays below the previously discussed 626.50 hurdle, which could now be seen as a resistance barrier, we will continue aiming lower. If this time the 597.00 obstacle surrenders and breaks, this might clear the way towards the 200-day EMA, or to the 566.50 level, marked by the low of April 20th.
The RSI and the MACD are pointing slightly lower. In addition to that, the RSI remains below 50 and the MACD continues to run below zero and its trigger line. The two oscillators support the idea of further declines in the near term, as they both indicate negative price momentum.
In order to consider a move to some higher areas, we would prefer to wait for a push back above the 674.00 hurdle, marked by the low of August 18th. This way CDI would be back above all of its EMAs and this may help attract a few more buyers into the arena. If so, the stock might travel to the 692.00 obstacle, a break of which could set the stage for a move to the current all-time high, at 725.50.
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