The technical picture of the Deutsche Telekom AG (ETR: DTE) stock on our daily chart shows that after hitting an all-time high in mid-August, the share price reversed lower and is now trading below a short-term tentative downside resistance line taken from the high of August 23rd. However, the stock recently found strong support near the lowest point of August, at 17.22. If the above-discussed downside line continues to provide resistance, DTE may continue to slide, however, in order to get a bit more comfortable with further downside, a drop below the lowest point of August would be needed.
If eventually a price-drop below the 17.22 hurdle happens, this will confirm a forthcoming lower low, potentially opening the door towards lower areas. The next obstacle on the way lower might be the 16.95 zone, marked by the low of May 28th, or the 200-day EMA. If the slide continues, DTE may drift to the 16.48 area, marked by the low of May 19th, where a temporary hold-up might occur. A small rebound could happen, but if the area near the 200-day EMA provides good resistance, the stock may reverse south again. If this time it overcomes the 16.48 obstacle, the next possible target could be the 16.23 level, marked by the low of May 13th.
At the time of writing, the RSI is pointing slightly higher, but continues to stay below 50. The MACD is pointing slightly to the downside, while running below zero and the trigger line. Both oscillators show negative price momentum, which supports the above discussed scenario.
Alternatively, if the aforementioned downside line breaks and the rate moves above the 18.05 hurdle, marked by the highs of September 3rd and 8th, that could attract a few more buyers into the game, potentially opening the door to some higher levels. That’s when we will aim for the next potential resistance area between the 18.42 and 1.48 hurdles, marked by the highs of September 7th and August 31st respectively. If the buying doesn’t stop there, the next possible target could be the current all-time high, at 18.92, reached on August 18th.
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