Looking at the technical picture of the Danone SA stock (EPA: BN) on our 4-hour chart, we can see that the share price is currently drifting lower and trading near one of its key support areas, at 58.30. At the same time, the stock is trading below a short-term tentative downside resistance line taken from the high of April 19th. Given the current weakness, there is a chance to see a further move south, especially if BN breaks below that support hurdle.
If, eventually, the share price falls below that 58.30 support zone, marked by the low of last week, this will confirm a forthcoming lower low, potentially opening the door for further declines. We will then target the lows of March 25th and 26th, at 57.90, a break of which may lead to a test of the 57.18 area, which is the low of March 11th and where BN could receive a temporary hold-up. That said, if the slide continues, the next possible target might be at 56.72, which is the low of March 10th.
The RSI and the MACD are both pointing lower. In addition to that, the RSI is below 50 and the MACD is below zero and its trigger line. The two oscillators support the idea of a possible decline, at least in the near term.
Alternatively, if the stock is able to break through the aforementioned downside line and then climb above the 59.54 zone, marked by the high of April 23rd, that might clear the path towards the 60.04 obstacle, or the 60.42 barrier, marked by the current highest point of April. If the buying doesn’t stop there, the next potential target could be at 61.12, which is the highest point of March.
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