Looking at the technical picture of Grifols SA Class A stock (BME: GRF) on a 4-hour chart, we can see that it managed to find support near the 23.52 hurdle, from which the price bounced back recently. Today we are seeing the stock of the Spanish pharmaceutical and chemical giant slowly breaking its short-term downside resistance drawn from the high of February 21st. Although the movement is showing positive signs, we would like to take a cautious approach for now and wait for a break above the current high of this week first, before getting comfortable with further extensions to the upside. Hence why will stay neutral for now.
If some buyers see the current level as a good place to step in, this might help the GRF to move further above the previously-mentioned downside line and push above the 27.85 barrier, marked by the current high of this week. That’s when more new investors could see an opportunity to join in and lift the stock higher. We will then aim for the 29.25 hurdle, a break of which may clear the path to the 29.97 level, marked by the high of March 6th.
If we look at our oscillators, the RSI and the MACD, both are pointing slightly higher, which supports the above discussed scenario. In addition to that, the RSI is just fractionally above 50 and the MACD, although still below zero, is currently running above its trigger line. It seems that the upside momentum might be picking up, but as discussed previously, we need a confirmation break first before examining higher areas.
If the price slides back below the aforementioned downside line and the 26.34 hurdle, which is today’s low, this may open the door to some lower areas again. We will then aim for a possible move back to the 25.00 obstacle, a break of which could set the stage for a re-visit of the current low of March, at 23.52.
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