Looking at the near-term technical picture of the L’Oreal SA stock (EPA: OR) on our 4-hour chart, we can see that the share price continues to trade above a short-term tentative upside support line taken from the low of July 8th. Also, in the beginning of this week, the stock broke above a short-term downside resistance line taken from the high of August 12th, this way opening the door for higher areas. However, in order to get a bit more comfortable with the upside scenario, we would prefer to wait for a break above the current highest point of this week, at 396.60.
If, eventually, that break happens, this would confirm a forthcoming higher, possibly clearing the path towards higher areas, as more buyers could join in. OR might travel to the 400.40 obstacle, or even to the 402.70 hurdle. That hurdle is marked near the high of August 9th and by the inside swing low of August 13th. If the buying doesn’t end there, the next potential target could be at 406.30, which is the current highest point of August.
The RSI and the MACD are currently flat. The RSI is fractionally below 50 and the MACD is slightly above the trigger line, but continues to run below zero. Although the two oscillators are showing slightly negative price momentum, it is not very clear. Hence why we will not put too much emphasis on them at this time.
In terms of examining lower areas, a break of the aforementioned upside line would be needed first. In addition to that, a price-drop below the 384.50 hurdle, marked by the low of August 20th. If such a move occurs, the stock might fall to the 381.50 obstacle, or to the 379.70 zone, marked by the low of July 30th. If there are still no new buyers in sight at that price, OR may drift towards the 376.00 level, which is the low of July 22nd.
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