The German car maker sees its shares up almost 6% on the day after beating its earnings. Is more upside now on the cards?

Taking a look at Mercedes as the German car maker beat its earnings earlier in the day. Currently, its stock is trading at around €72.07 a share. Its shares are up 5.7% on the day and we can see that they are now approaching the resistance of €73.71. A break above this resistance could then see an extension towards the previous tough resistance of €76.10, where the stock formed a double top back in 2023. The momentum from the start of the year has clearly been bullish and technicals point towards further upside. However, it is worthy noting that Mercedes is one of the constituents of the Dax 40 index, the German index is currently trading at all-time highs. This increases the risk-reward as any declines (profit-taking) for the index may drag this stock down with it. But, the declines may not necessarily be as aggressive for an individual stock compared to the entire index. Nevertheless, the support here sits at €66.46. A fall below it would then shift the focus towards €65.32 followed by €62.74. Looking at the technical indicators, both the MACD and the RSI are positive. However, the RSI is suggesting that the stock is somewhat overbought as it reads 81. Hence, investors should be aware in case of any profit-taking in the near term.