Is The LHA Stock Preparing To Spread Its Wings And Fly Higher?

Looking at the technical picture of the Deutsche Lufthansa AG stock (FTR: LHA) on our daily chart, we can see that in the beginning of January, the share price overcame a medium-term downside resistance line drawn from the high of June 2^nd. Yesterday, the stock managed to jump and stay above the highest point of January, at 7.33. Such a move confirmed a forthcoming higher high, potentially opening the door towards higher levels. At the same time, LHA is trading above a short-term upside support line taken from the low of December 20^th.

If the buying momentum remains strong, the next potential target could be at the 200-day EMA, or at the 7.80 hurdle, marked by the low of September 16^th. A break of that hurdle might set the stage for a push to the 8.43 obstacle, a break of which may clear the path towards the 9.09 level, marked by the highest point of September.

The RSI and the MACD are both pointing higher. In addition to that, the RSI is above 50 and the MACD continues to run above zero. Also, the MACD managed to pop above the signal line today – a move that could be seen as a positive one as well. Overall, the two oscillators show positive price momentum, which supports the above-discussed scenario.

Alternatively, if LHA breaks the aforementioned upside line and then falls below the 6.78 hurdle, marked by the current lowest point of this week, that may scare off some buyers from the arena for a while. The stock could then drift to the 6.44 obstacle, or even to the 6.10 zone, marked by the low of December 30^th. If the slide continues, the next possible target might be at 5.63, which is the low of December 20^th.

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