After taking a strong hit in the beginning of March 2020 together with the rest of the market, the stock of Hugo Boss AG (ETR: BOSS) is showing signs of life again, as it tries to recover some of those losses made in first quarter of the year. The beginning of November was marked by a strong rally, which lifted the share price from the low-twenties to high-twenties. The stock is now trying to reach the psychological 30-euro mark. BOSS is already pushing above the previous highest point of December, at 28.16, this way confirming a higher high. At the same time, the stock is balancing above a short-term upside support line drawn from the low of November 19th. We will remain positive with the near-term outlook, at least for now.
A further move north, away from that 28.16 hurdle, could attract more buyers into the game, potentially opening the door for a move to the next possible resistance area, at 29.84, marked by the high of June 16th. BOSS might initially stall there for a bit, or even correct slightly lower. However, if the share price continues to balance somewhere above the 28.16 hurdle, we may see new buyers jumping in again. If so, the stock could travel back to the 29.84 zone, a break of which might set the stage for a push to the 31.45 level, marked by the highest point of June.
The RSI and the MACD are in bullish territories. The RSI is pointing higher, while sitting above 50. The MACD, although just fractionally below its trigger line, remains flat but comfortably above zero. The two indicators are still showing positive momentum, which supports the above discussed scenario.
On the other hand, if the previously mentioned upside line breaks and the share price slides below the 26.06 area, marked by the low of December 11th, that might spook new buyers from entering any time soon. BOSS could end up sliding to the low of November 19th, at 25.07, or even to the 23.48 level. That level marks the inside swing high of October 23rd.
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