Looking at the technical picture of the Carrefour SA stock (P. EX: CA), which is listed on Euronext Paris, we can see that it started picking up investor interest again. The price is balancing near its key resistance barrier, at 15.74, marked by the highest point of January. At the end of that month, we saw the stock breaking above its medium-term downside resistance line drawn from the high of October 23rd. For now, we will take somewhat of a bullish approach in the near term but wait for a clear push above the 15.74 barrier before getting comfortable with higher areas.
A strong move above the 15.74 zone would confirm a forthcoming higher high and more buyers may see this as some reassurance that there might be some more upside, at least in the short run. If more of them join in, this could help lift the share price to the 16.01 hurdle, which initially might provide some good resistance. That said, if the buyers see it just as a temporary obstacle, its break may lead CA to the high of September 30th, at 16.36.
The RSI and the MACD are somewhat reflecting the above-discussed idea that there could be a bit more upside in the near term. The RSI is above 50 but has flattened a bit. The MACD looks a bit more reliant in term of the upside, as it has moved above its trigger line, while pointing higher and sitting above zero.
Alternatively, in order to consider the downside, at least in the short run, a drop back below the aforementioned downside line and the 15.00 mark would be needed. This way, the stock could then slide to the 14.75 hurdle, which is the high of January 23rd. The price might stall there for a bit, but if there are still no new investors joining in, this could lead to another decline, potentially hitting the 14.40 level. That level marks the lowest point of 2019.
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