Applus Services SA (BME: APPS) is a company, which provides services in the fields of consultancy, engineering, inspection, non-destructive testing, technical assistance, and type approval. The firm recently acquired two other companies (Inecosa and Adicora) in Spain’s power generation and electrical distribution sectors. The purchase was made from one of the leading Spanish energy and utilities company Iberdrola SA, which could now be seen as a partial partner to Applus. Demand for the services, provided by Applus, seems to be picking up. The company’s stock is also relatively attractive to investors, as it offers an annual dividend yield of around +1.6%. All the above-mentioned positive aspects put APPS under the investor radar.
From the technical perspective, from around the end of September, APPS continues to push higher, while trading above a medium-term upside support line, taken from the low of September 24th. Today, the stock popped above its February high, at 9.30, this way confirming a forthcoming higher high. If the share price remains above the 9.30 zone, there is a good chance we could see a further upmove. Hence our positive approach for now.
If more buyers join in, the stock might easily climb to its next potential resistance area, at 9.88, marked by the low of March 5th, 2020, which could halt the upmove temporarily. The price may even retrace back down somewhat, however, if it remains above the 9.30 hurdle, another push higher might be possible. If so, APPS could make its way back to the 9.88 obstacle, a break of which may clear the way to 10.24, or to the 10.44 level, marked by the highest point of March 2020.
The RSI and the MACD are currently pointing higher. In addition to that, the RSI is above 50 and the MACD sits above zero and its trigger line. The two oscillators continue show rising price momentum, which supports the above-discussed scenario.
Alternatively, if the stock breaks the aforementioned upside line and then falls below the 8.44 hurdle, marked by the low of February 26th, that could open the way for further declines and new buyers might stay away from entering for a while. APPS may then drift to the psychological 8.00 area, a break of which could set the stage for a push to the 7.45 level, marked by the low of November 20th, 2020. Slightly below it sits another possible target, at 7.26, marked by the highest point of October 2020.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.