The technical picture of the RWE AG (FRA: RWE) stock on our 4-hour chart shows that the share price broke below a medium-term upside support line drawn from the low of March 7th. At the same time, the stock is now trading below all the EMAs, meaning that new buyers could stay away from entering for a while.
Even if the share price retraces a bit higher, but stays below the aforementioned upside line, we may class that move upwards as a temporary correction, before another possible leg of selling. RWE might drift to the low of May 12th, at 38.18, where a slight hold-up could happen. That said, if the buyers are still nowhere in sight, the slide may continue and the next potential target could be at 36.59, marked by the lowest point of May.
Although the RSI is pointing higher, it remains well below 50. The MACD continues to aim lower, while running below zero and the trigger line. The two oscillators show negative price momentum, supporting the scenario discussed above.
Alternatively, if the stock breaks a short-term tentative downside resistance line taken from the high of May 20th, and also jumps above the 41.83 barrier, marked by the current highest point of June, such a move might attract more buyers into the game. RWE could then travel to the high of May 26th, at 42.62, or even to the 43.97 level, marked by the highest point of May.
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