BMW has experienced a significant sell-off and is now testing a major long-term support zone around €58-60. This area also coincides with the lower boundary of a broad descending channel that has been respected for over a year.
Despite the bearish structure, momentum indicators suggest the stock is becoming heavily oversold. RSI has fallen close to the lower end of its historical range, while the stochastic oscillator is deeply oversold, increasing the probability of at least a relief rally.
Bullish Scenario 📈
If buyers defend the current support zone, I expect a rebound toward the first resistance around €74-76, where previous support has now turned into resistance.
A stronger recovery could extend toward the descending trendline near €80-85. A decisive weekly close above that trendline would be the first technical sign that the longer-term downtrend is losing strength.
Bearish Scenario 📉
Failure to hold the current support would likely send BMW toward the lower support line around €50, where the broader long-term channel offers the next significant buying area.
As long as price remains below the descending trendline, the primary trend remains bearish.
Key Levels
🟢 Support:
€58-60
€50 (major long-term support)
🔴 Resistance:
€74-76
€80-85
Descending trendline
Conclusion
Although the overall trend is still bearish, BMW is approaching an area where the risk-to-reward for long positions becomes increasingly attractive. I will be watching closely for bullish price action or a confirmed reversal before becoming more optimistic.
Patience is key here. The support zone may produce a strong bounce, but confirmation is still needed.
Despite the bearish structure, momentum indicators suggest the stock is becoming heavily oversold. RSI has fallen close to the lower end of its historical range, while the stochastic oscillator is deeply oversold, increasing the probability of at least a relief rally.
Bullish Scenario 📈
If buyers defend the current support zone, I expect a rebound toward the first resistance around €74-76, where previous support has now turned into resistance.
A stronger recovery could extend toward the descending trendline near €80-85. A decisive weekly close above that trendline would be the first technical sign that the longer-term downtrend is losing strength.
Bearish Scenario 📉
Failure to hold the current support would likely send BMW toward the lower support line around €50, where the broader long-term channel offers the next significant buying area.
As long as price remains below the descending trendline, the primary trend remains bearish.
Key Levels
🟢 Support:
€58-60
€50 (major long-term support)
🔴 Resistance:
€74-76
€80-85
Descending trendline
Conclusion
Although the overall trend is still bearish, BMW is approaching an area where the risk-to-reward for long positions becomes increasingly attractive. I will be watching closely for bullish price action or a confirmed reversal before becoming more optimistic.
Patience is key here. The support zone may produce a strong bounce, but confirmation is still needed.
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