Looking at the technical picture of the Banco de Sabadell SA stock (BME: SAB) on our daily chart, we can see that it is currently trading near one of its key resistance areas between the 0.441 and 0.449 levels, marked by the highest point of February and November respectively. At the same time, the share price continues to run above a medium-term tentative upside support line, drawn from the low of October 30th. Another positive aspect is that the stock is balancing above all EMAs, which may attract more new buyers into the game. That said, in order to get a bit more comfortable with higher areas, we would like to see a break above aforementioned resistance area first, hence our somewhat positive approach for now.
If, eventually, SAB makes a break through the 0.449 barrier, this will confirm a forthcoming higher high, potentially clearing the path to some higher areas. More buyers could join, what could result in the share price rising to the 0.474 hurdle, marked by the highest point of April 2020. The stock might stall there for a bit, but if the buying activity remains elevated, SAB may continue pushing north. That’s when we will target the 0.524 level, which is the high of March 26th, 2020.
Although the RSI is currently pointing a bit lower, it remains above 50. The MACD continues to point higher, as it runs above zero and its trigger line. The two oscillators still show upside price momentum, which supports the above-discussed scenario.
Alternatively, if the previously mentioned upside line breaks and the share price falls below the 0.376 hurdle, marked by the low of February 12th, that may spook new buyers from entering any time soon. SAB could drop to the 0.355 zone, marked near the lows of the period between January 25th and February 2nd, which might halt the slide for a bit. That said, if new buyers are still nowhere to be found, the stock could continue drifting south, possibly aiming for the 0.341 obstacle, or even for the 0.326 level, marked by the lowest point of December 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.