Looking at the technical picture of the BASF (ETR: BAS) stock on our 4-hour chart, we can see that after reversing higher in the beginning of May, the share price continues to climb higher. Also, the stock has moved away from a short-term tentative upside support line taken from the low of May 9th. BAS is now trading around the 200 EMA. Although there is a good indication that a further move higher could be possible, we would still prefer to wait for a push above the 52.96 barrier, which is current highest point of June, tested on the 3rd of the month.
A push through the 52.96 hurdle would confirm a forthcoming higher high, possibly opening the door towards the 54.17 zone, marked by the highest point of April. Initially, BAS might stall there for a bit, however, if there is enough buying interest, the stock may overcome that zone and aim for the 55.51 level. That level marks the high of March 29th.
The RSI and the MACD are both flat. In addition to that, the RSI is above 50 and the MACD is fractionally below the signal line but remains well above zero. Overall, the two oscillators show positive price momentum, which supports the above-discussed scenario.
In order to shift our attention to some lower areas, we would prefer to wait for a break through the aforementioned upside line and for a price-drop below the 50.70 hurdle, marked by the low of May 27th. Such a move may spook some of the buyers, possibly resulting in the stock moving towards the 49.82 area, marked by the inside swing high of May 23rd. If the slide continues, the next potential target could be at 48.50, which is the low of May 24th.
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