The technical picture of the Deutsche Telekom AG stock (ETR: DTE) shows that it has been moving sideways from around the end of May. The share price is currently stuck roughly between the 14.10 and 15.59 levels. At the end of September, the stock tested the lower bound of the above-mentioned pattern, from which it rebounded and is now sitting near the middle of that range. In order to consider the next directional move, we would like to see a break of one of the sides of the range.
A drop through the lower bound, at 14.10, may spook new buyers from entering for a while, as such a move would confirm a forthcoming lower low, increasing the stock’s chances of moving further south. DTE could then slide to the 13.75 obstacle, or even the 13.28 area, marked by the low of May 20th. The share price might get a temporary hold-up around there, but if there are still no new takers of the stock at that price, this may result in another decline, possibly bringing the share price to the 12.81 level, marked by the lows of April 28th and May 4th.
The RSI is pointing a bit higher, while remaining fractionally above 50. The MACD is also currently pointing slightly to the upside, while sitting slightly above its trigger line, but within negative territory. It seems that both oscillators support our idea of waiting for a violation of one of the range boundaries first, before examining the next possible move north or south.
On the upside, if the share price climbs above the upper side of the aforementioned range, at 15.59, and also pushes above the highest point of September, at 15.72, that would confirm a forthcoming higher high, potentially inviting more buyers into the game. DTE could then rise to the 16.18 obstacle, a break of which might clear the path towards the current highest point of this year, at 16.75.
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