Looking at the technical picture of the ThyssenKrupp AG stock (ETR: TKA) on our daily chart, we can see that after falling sharply around mid-January, the share price stabilized somewhat and is now coiling up and forming a possible triangle pattern. Overall, the stock could be drawing a potential bearish pennant, which tends to break to the downside. That said, until we see a clear break below the lower side of that triangle, we will remain cautiously bearish.
If, eventually, that break happens and the price falls below the 8.70 hurdle, marked by the lowest point of January, that would confirm a forthcoming lower low. TKA may then drift to the low of October 20th, at 8.47, a break of which could clear the path towards even lower areas. That’s when we would aim for the 7.90 level, marked by the lowest point of October.
Despite pointing fractionally to the upside, the RSI is still below 50 and the MACD remains below zero and also the signal line. The two oscillators still show negative price momentum, which supports the downside scenario.
Alternatively, if TKA pops above the upper side of the triangle and then rises above the 9.41 hurdle, marked by the high of January 26th, that may attract more buyers into the game. The stock could drift towards the inside swing low of January 19th, at 9.70, where a temporary hold-up might occur. However, if the buying doesn’t stop there, the next possible target may be somewhere near the 10.24 level, which is the high of January 20th.
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