JFD - Could Kering Stock Recover Some Of Its Losses Soon

The stock of the French multinational luxury brand company Kering (EPA: KER) drifted lower from the start of the year. However, the price recently found support near the 486.60 level, marked by the high of October 24^th. Also, around there, KER tested its medium-term upside support line drawn from the low of August 28^th, 2019, which helped keep the share price from moving further down. Given all that, the stock may try to recover some more of its losses, hence why we will take a somewhat bullish approach, at least for now.

If KER makes its way above yesterday’s high, at 523.40, this will create a new higher high and place the stock back above the 21 EMA on the 4-hour chart. Such an action might help attract more buyer interest. The share price may then travel to the 539.40 hurdle, marked by the high of February 24^th, a break of which may set the stage for a move to the 555.40 level. That level marks the low of February 21^st.

Looking at our oscillators, the RSI and the MACD, both continue pointing higher, after bottoming recently. The RSI is just slightly below 50 and the MACD had recently moved from its lows and now sits above its trigger line. The two indicators seem to be in support of the idea of seeing some more upside.

Alternatively, if the previously-mentioned upside line breaks and the share price slides below the lowest point of February, at 486.60, this could force a few investors to liquidate some of their existing positions. That’s when the stock may drift to the 466.30 zone, a break of which may clear the path to the 453.70 level, marked by the low of October 10^th, 2019.

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