Looking at the Heineken stock (AMS: HEIA) from the technical side, up until yesterday, it was trading above a medium-term tentative upside support line taken from the low of February 27th. On Monday, HEIA opened with a big gap to the downside, which lead to a break of the above-mentioned upside line. However, today, after finding good support at 93.10, the stock started to recover. If this correction is short-lived, HEIA may reverse back down again, but we will only consider further downside, if it falls below the 93.10 hurdle. For now, we will stay cautiously bearish.
A drop below the 93.10 zone would confirm a forthcoming lower low on a shorter timeframe and we could then target the 92.00 mark, or even the 90.94 hurdle, marked by the low of March 14th. This is the area where the share price might meet the 200-day EMA, which, initially, could provide additional support. If HEIA rebounds from there, but there is still not enough buying interest among investors to drive the stock further north, it may reverse back down and bypass the 90.94 area, aiming for the 88.56 level, marked by the low of March 5th.
After HEIA gapped down, our oscillators turned lower as well. The RSI fell below 50, but is currently pointing a bit higher, which is due to the correction that we are seeing now. The MACD is now pointing lower, while sitting below zero and its trigger line. Both indicators are somewhat in support of the above-mentioned scenario, for now.
Alternatively, if more investors see the current drop as a good opportunity to take advantage of the lower price, and the stock climbs above both the aforementioned upside line and the 96.54 barrier, this may allow it to move further in the northern direction. The next potential pit-stop for HEIA might be the 98.46 zone, marked by the low of July 12th. But if that zone is just seen as a temporary obstacle on the way higher, a break of it could lead the stock to the 100.90 level, marked by the highest point of July, which also is the all-time high.
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