The technical picture of the RWE stock (FRA: RWE) on our daily chart shows that recently, the share price took a dive, due to the ongoing geopolitical tensions in Europe. However, we will consider the drop to be a corrective one, as the stock continues to trade above a medium-term tentative upside support line drawn from the low of October 12th. If RWE continues to balance above that trendline, we will stay positive, at least in the near-term.
A rebound from the aforementioned upside line could attract more buying interest, especially if the stock also rises back above the 37.03 hurdle, marked by the inside swing low of February 22nd and near the current high of today. RWE may drift to the 38.16 obstacle, or even to the current all-time high, at 39.35, where a temporary hold-up might occur. If the rise continues, a break of the 39.35 barrier would confirm a forthcoming higher high, placing the stock into the uncharted territory. The next possible target could be the psychological 40-euro mark.
The RSI and the MACD are both pointing lower. Additionally, today, the RSI moved below 50 and the MACD dropped below the signal line. That said, the MACD remains above zero. The RSI had just started showing negative price momentum, but the MACD is still in positive territory. Given that the two oscillators are slightly out of sync, we will not put too much emphasis on them, for now. Instead, we will focus on some support and resistance levels.
Alternatively, if the share price breaks the aforementioned upside line and then falls below the 35.42 hurdle, marked by the inside swing high of January 25th, that may temporarily scare off some buyers from the field. RWE could fall to the current lowest point of this year, at 34.00, where it might also test the 200-day EMA. If that whole territory fails to hold and breaks, the next potential target could be in the area between the 31.63 and 31.92 levels, marked by the lows of November 15th and 23rd.
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