The technical picture of the RWE AG stock (FRA: RWE) on our daily chart shows that today, the share price rushed through one of its key barriers, at 32.20, marked by the highest point of July. In addition to that, the stock is trading above a short-term tentative upside support line taken from the low of July 20th. As long as the price stays above that trendline, we will continue aiming higher.
A further push north, away from the 32.20 hurdle, may attract more buyers into the game. RWE could then travel to the 32.84 obstacle, or even to the 33.58 zone, marked by the inside swing low of April 23rd. If the buying doesn’t stop there, the share price might continue rising and the next target could be at 34.45, which is the high of April 23rd. Slightly above it lies another potential resistance level, at 34.82, marked by the highest point of April.
The RSI and the MACD are both pointing higher. Additionally, the RSI remains above 50 and the MACD continues to run above zero and its trigger line. The two indicators show positive price momentum, which is in line with the scenario discussed above.
Alternatively, if the previously mentioned upside line breaks and the share price drops below the 31.28 hurdle, marked by yesterday’s low, that could temporarily spook some buyers away from the arena. This might increase the stock’s chances of drifting further south, possibly aiming for the 30.83 obstacle, or the 30.39 zone, marked by the low of August 6th. If there are still no new buyers in sight, a further decline may bring the share price to the 29.60 level, marked by the low of July 27th.
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