Deutsche Lufthansa trading in a bearish channel

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By :  ,  Financial Analyst

Deutsche Lufthansa: Trading in a bearish channel

Deutsche Lufthansa's seat reservations for October remains less than 10% of the same period last year, and the airline group is planning further jobs and fleets cuts, reported Bloomberg citing people familiar with the matter.

On the technical front, the stock price is trading in a bearish channel in place since 2017 and remains capped by the 20MMA. The downside breakout of the long term support trend line should maintain a downward pressure. The monthly Relative Strength Index (RSI, 14) has broken below its rising trend line and is not oversold. The long term trend remains bearish. Next support is set at 6.62E (2003 low). The upside breakout of the bearish channel (Resistance trend line currently at 12.56E) would reverse the trend and would call for a rebound towards 17.5E.

Source: GAIN Capital, TradingView

Related tags: Equities

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