Looking at the daily chart of the Aegon stock (AMS: AGN), it seems that there is a good chance the price may go higher, as it continues to trade above a medium-term downside resistance line, taken from the high of October 4th, and a short-term upside support line drawn from low of August 29th. But for now, the stock is finding it hard to overcome the 200-day EMA, so that’s why we will remain cautiously-bullish over the near term.
If the price eventually overcomes that 200-day EMA and climbs above the 4.270 barrier, marked by the highest point of December, this would confirm a forthcoming higher high and more buyers may join in. We will then consider a possible move to the 4.400 obstacle, a break of which could clear the path to the 4.660 zone, which held AGN from moving higher between July 12th and 25th.
Our oscillators, the RSI and the MACD, are providing us with slightly mixed signals. The RSI is currently above 50 and points higher. The MACD, although slightly above zero, it continues to drift below its trigger line. This is why we will not put too much emphasis on these indicators, until they establish a clear direction.
In order to consider the downside, we need to see break below all of the aforementioned lines, the upside and the downside, and also a price-drop below the 3.904 hurdle, which is the lowest point of December. We will then aim for the 3.810 area, marked by the low of October 31st, which could stall the slide for a bit, or even allow the stock to rebound slightly. That said, as long as AGN stays below the aforementioned downside line, we will continue aiming lower. If this time the 3.810 obstacle fails to withstand the bear pressure, its break may open the door for a deeper slide, where the next support level could be around the 3.580 mark, which is the low of October 8th.
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