Looking at the technical picture of the TomTom NV stock (AMS: TOM2) on our 4-hour chart we can see that this week, the share price managed to overcome a short-term downside resistance line taken from the high of May 25th. Today, the stock corrected back down slightly, but found support near the 50 EMA and then rebounded. For now, we will stay positive with the near-term outlook.
Even if TOM2 moves a bit lower, but continues to trade above all of its EMAs, new buyers may step in and drive the stock north. We might aim for yesterday’s high, at 7.16, a break of which would confirm a forthcoming higher high, potentially opening the way towards higher areas. That’s when we will target the 7.28 hurdle, marked by the high of June 22nd, or we might target the 7.39 level, which is the highest point of June.
The RSI is just slightly pointing higher, while sitting above 50. The MACD is pointing higher a bit more confidently, while running 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 share price falls back below the aforementioned downside line and drops below the 6.93 hurdle, marked by an intraday swing high of July 12th, that could scare off new buyers for a while, as such a move might increase the stock’s chances of drifting further south. TOM2 may slide to the 6.84 obstacle, or to the 6.75 zone, marked by the low of July 12th, where a temporary hold-up could occur. That said, if there are still no new buyers near those levels, the stock may end up falling to the 6.61 area, marked by the current lowest point of July.
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