After a sharp move higher in the beginning of November, the stock of the Deutsche Lufthansa AG (ETR: LHA) continued with its journey north and is now trading within a rising channel pattern. As long as the lower bound of that pattern remains intact, we will stay positive, at least for now.
If the share price corrects a bit lower, but then rebounds from the lower side of the aforementioned channel, new buyers could step in and drive the stock higher. LHA may then fly to the current highest point of November, at 10.79, where it might get halted temporarily. That said, if there is still enough buying interest even at that price, the stock could rise further, possibly aiming for the 11.03 zone, marked by the high of June 17th, or it may travel towards the upper bound of the previously discussed channel.
Although the RSI and the MACD, on our 4-hour chart, are currently pointing slightly to the downside, the two oscillators still indicate positive price momentum. The RSI is above 50 and the MACD, despite moving slightly below the trigger line, remains well above zero. Such a picture supports the above discussed idea.
If the lower side of the rising channel fails to provide good support and breaks, this may open the door for further declines, especially if the share price slides below the 9.43 hurdle, marked by the lows of November 19th and 20th. New investors might stay away from entering into the game, this way forcing LHA to skydive towards the 8.87 zone, or the 8.57 level, marked by the low of November 13th and the high of October 20th respectively.
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