The technical picture of the Banco Santander SA stock (BME: SAN) on our 4-hour chart shows that, today, the share price was able to push strongly through a key resistance barrier, at 2.84, marked by the high of May 5th. Additionally, the stock is trading above a short-term tentative upside support line drawn from the low of May 12th. For now, we will take a positive approach and target higher areas.
A further move north could bring SAN closer to the 2.90 obstacle, or even to the 3.01 zone, marked by the inside swing low of April 6th, where a temporary hold-up might occur. The stock could retrace back down somewhat, however, as long as it stays somewhere above the 2.84 hurdle, we will continue targeting higher areas overall. Another push north may send the share price back to the 3.01 hurdle, a break of which might set the stage for a move to the 3.16 level, marked by the high of April 26th.
The RSI is pointing higher and continues to sit above 50. The MACD is also pointing higher, while remaining above zero and the signal line. The two indicators support the above-discussed scenario, as both indicate positive price momentum.
Alternatively, a break of the previously mentioned upside line and a price-drop below the 2.73 zone, marked by the low of May 20th, could scare off the buyers from the arena for a while. SAN may then drift to the 2.68 obstacle, or even to the 2.61 hurdle, which is the current lowest point of May. If that area fails to provide support and breaks, the next potential target might be at 2.49, which is the lowest point of March.
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