The stock of Daimler AG (ETR: DAI), the producer of the world-famous Mercedes cars, is finally showing some positive signs for current and potential investors. After a year of mainly moving south and trading below its long-term downwards-moving trendline, taken from the highest point of January 2018, the share price has finally broken above that downside line. At the time of this analysis, DAI is correcting lower, but if it continues trading above the previously-mentioned line, we will aim for higher levels.
In order to get more comfortable with the upside, we need to see a firm brake above the 53.50 resistance barrier, marked by the highs of December 3rd and November 14th. Only if such a move a occurs, we will start targeting higher areas. The next possible resistance zone could be seen around the 54.75 hurdle, a break of which may set the stage for the 57.10 level. This is where the price got held on October 4th.
Alternatively, a drop back below the downside resistance line and a break below the 49.85 hurdle could be a sign that not all is good with the stock and we may see the DAI falling even more. The next possible support area to watch out for might be near the 48.45-euro price tag, a break of which could lead the stock further down towards the 46.15 zone. This area acted as the inside swing high of December 28th and the inside swing low of December 14th.
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