From the technical side, the stock of the German airline company Lufthansa (ETR: LHA) is seen to be forming a descending triangle pattern. That formation has been in play from around the beginning of April, as the share price has been trading below a short-term downside line taken from the high of April 7th, but LHA has been also struggling to move below the 10.11 zone, which is the lowest point of April and May. The share price is currently closer to the upper side of the above-mentioned pattern, however, if that downside line continues to provide resistance, another slide could be possible.
A small push higher may bring the stock even closer to the upper side of the triangle, which if continues to hold, might force LHA to reverse south. If so, the price might travel towards the 10.60 obstacle, or to the 10.30 zone, marked by the low of last week. However, if there are still no new buyers around that price level, the stock could slide further, potentially aiming for the 10.11 zone, marked by the lower side of the aforementioned triangle.
The RSI is pointing slightly to the upside, while sitting fractionally above 50. The MACD, is more on the flat side, as it coincides with the zero and trigger lines. For now, the two oscillators seem to lack directional strength, which means we will not put too much emphasis on them at this point in time.
Alternatively, if the share price rises above the aforementioned upper side of the triangle and then climbs above the 11.24 barrier, marked by the current highest point of June, that could attract more buyers into the game. LHA might fly towards the highest point of April, at 11.71, a break of which may lead to a further upmove. That’s when we will aim for the 12.22 level, marked by the highs of March 15th and 16th.
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