Danone SA Stock Pops Higher

by Darius Anucauskas
12:44, 2022/01/11

Looking at the technical picture of the Danone SA stock (EPA: BN) on our daily chart, we can see that today, the share price went for a higher high, overcoming the highest point of last week, at 56.88. At the same time, the stock is still trading above a short-term tentative upside support line taken from the low of December 21^st. For now, we will remain positive, at least with the near-term outlook.

If the share price continues to trade above the 56.88 hurdle, this may keep the buyers interested and the stock could continue traveling north. That’s when we will aim for the high of November 16^th, at 57.62, a break of which might set the stage for a test of the 58.00 zone, which is the high of November 15^th. Initially, BN may stall there for a bit, but if there is still enough buying interest, the stock might end up rising all the way to the highest point of November, at 58.40.

Both, the RSI and the MACD, are showing positive price momentum, as the RSI is above 50 and points higher, while the MACD continues to run above zero and the trigger line. The two oscillators seem to be in support of the above discussed scenario.

Alternatively, a break of the aforementioned upside line and then a price-drop below the 55.58 hurdle, marked by the low of January 7^th, could scare off some buyers from the arena for a while. BN might then drift to the 55.35 obstacle, or to the 54.72 zone, which is the current lowest point of January. If the slide doesn’t stop there, slightly below it lies another possible target, at 54.25, marked by the low of December 31^st. Around there, the stock could also test another short-term tentative upside line, drawn from the low of November 30^th.

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