The short-term technical picture of the e.On SE Common stock (ETR: EOAN) looks somewhat positive, as it continues to form higher lows, while trading above a short-term tentative upside support line taken from the low of September 24th. That said, the share price is currently testing its key resistance at the 9.85 barrier, which kept holding the stock down from around mid-September. In order to get excited with the upside, at least in the near term, we would prefer to wait for a strong move above the 9.85 barrier first. Hence our cautiously-bullish approach for now.
If EOAN eventually rises above that 9.85 barrier, this will confirm a forthcoming higher high, possibly opening the door for a further uprise. The stock could then get pushed to the high of September 14th, at 9.96, which may temporarily halt the acceleration. However, if the buyers are still active, this might help lift the share price even higher, potentially aiming for the 10.11 level, marked by the high of September 10th.
The RSI and the MACD are currently flat. But the RSI is slightly above 50 and the MACD is fractionally above zero and its trigger line. Both oscillators are showing positive price momentum, which suggests there could be more upside to come in the near term.
Alternatively, if the share price somehow breaks the aforementioned upside line and the price falls below the 9.51 hurdle, marked by the low of last week, that might open the way for larger extensions to the downside, as such a move may stop new buyers from entering any time soon. EOAN could then travel to the 9.45 obstacle, a break of which might send the stock to the 9.34 zone, marked by the low of September 29th.If the slide continues, the next possible support area could be seen at 9.27, which is the lowest point of September.
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