The technical picture of the Baker Hughes Co stock (NYSE: BKR) on our daily chart shows that the share price has been drifting lower, while trading below a short-term downside resistance line taken from the high of February 25th. That said, the stock is approaching a key support area, near the 19.66 hurdle, marked by the current lowest point of this year, reached on January 27th. Although it seems that BKR could continue with its journey south for a while more, in order to get comfortable with further declines, we would prefer to see a break below that hurdle first. Until then, we will take a cautiously-negative approach in regards to the near-term outlook.
If, eventually, the stock drops and stays below the current lowest point of 2021, at 19.66, that would confirm a forthcoming lower low, potentially opening the door for lower areas. BKR might then slide to the 18.72 obstacle, or to the 17.98 zone, marked by the lows of November 19th and 20th. Initially, the share price may get a slight hold-up around there, but if there are still no new takers of the stock at that price-level, the fall might continue. The next target could be at 16.93, which is marked by the lows of November 9th and 12th.
The RSI and the MACD are both pointing lower. Also, the RSI is below 50 and the MACD is below zero and its trigger line. Such a picture shows an increasing downside speed of the price, which is somewhat inline with the idea discussed above.
Alternatively, for us to get excited with the upside, a break of the aforementioned downside line would be needed. This way, more buyers might join in and push BKR to the 24.60 barrier, marked by the high of March 18th. If there are still enough new buyers, the stock could easily overcome the 24.60 barrier and aim for the current highest point of this year, at 25.50, or for the 25.99 level, marked by the highest point of 2020.
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