From the technical side, the stock of the German electricity generation company RWE AG (ETR: RWE) seems to be showing willingness to move higher in the near term, as the share price is still balancing above a short-term tentative upside support line drawn from the low of March 3rd. Also, the stock is trading near its key resistance barrier, at 33.00. From the short-term perspective, we will take a somewhat positive approach.
A strong push above the 33.00 barrier, marked by the current highest point of March, would confirm a forthcoming higher high, potentially setting the stage for further advances. RWE might then drift to the 33.50 obstacle, or to the 34.20 zone, marked near the highs of February 11th and 15th. If the buying doesn’t stop there, the next target could be at 34.70, marked by the high of February 10th. Not far from there, the stock may test a medium-term tentative downside resistance line, which might provide additional support.
Although the RSI and the MACD are currently flat, they still seem to be in favour of the upside. The RSI remains above 50 and the MACD continues to run above zero and fractionally above its trigger line. The two oscillators are still showing positive price momentum.
On the downside, if the stock breaks the aforementioned upside line, this could spook new buyers from entering the arena for a bit. RWE may drift to the 30.90 zone, marked by the low of March 18th, which could provide a temporary hold-up. However, if there are still no new buyers at that level, the share price may continue sliding, initially targeting the 30.50 obstacle and then potentially the 29.94 area, marked by the lowest point of March.
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