The short-term technical picture of Daimler AG stock (ETR: DAI) on our 4-hour chart shows that, after reversing to the downside around mid-April and then trading below a short-term downside resistance line taken from the high of April 19th, the stock is now breaking that line, this way showing willingness to move higher. However, we would prefer to wait for a daily close above that downside line before aiming higher. Therefore, we will take a somewhat positive approach for now.
If, eventually, we see the required daily close above the aforementioned downside line, this may attract more buyers into the game. More of them might join in if the share price rises above the 73.89 barrier, marked by the current highest point of this week. If such a move occurs, DAI may travel towards the 75.54 hurdle, marked by the high of April 28th, where the stock could get held for a bit. The share price may even decline slightly from there, however, if it stays above the previously-mentioned 73.89 zone, new buyers might step in and drive DAI higher. If this time it is able to overcome the 75.54 obstacle, the stock could end up traveling to the 77.22 zone, or to the 77.95 level, marked by the highs of April 20th and 19th respectively.
At the time of writing, the RSI is pointing higher, while sitting slightly above 50. The MACD, although below zero, is now above its trigger line and points higher as well. The two oscillators seem to be supporting the above-discussed scenario, but, nevertheless, a confirmation break above the 73.89 barrier would still be needed, in order to get more comfortable with the upside scenario.
On the downside, new buyers may get spooked if the share price slides below the 70.43 area, marked by the low of May 5th. DAI could then drift further south, potentially overcoming the current lowest point of May, at 70.02, and aiming for the 68.73 zone, marked by the low of March 3rd. If there are still no new buyers at that price, the stock may continue drifting further south towards the 67.60 level, marked by the highest point of February.
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