The technical picture of the Mapfre SA stock (BME: MAP) shows that after a good boost that was received last week, today, the share price is stalling slightly below its last week’s high, at 1.624, and the 200-day EMA. The current price action could also be forming a potential bullish flag. At the same time MAP is still balancing above a short-term tentative upside support line drawn from the low of October 28th. For now, we will take a positive approach, but to get a bit more comfortable with the upside, we would like to see a break above the last week’s high first.
If the stock does pop above the high of last week, at 1.624, this will confirm a forthcoming higher high, possibly inviting more new buyers into the game and opening the door for a move towards the 200-day EMA, or the 1.682 barrier, marked by the highs of August 11th, 12th and 13th. If the buying doesn’t stop there, MAP could easily rise to the 1.805 hurdle, which is the high of June 16th. The upmove might get halted around there. If that area proves to be a decent resistance, the stock may even retrace back down a bit. If it does that, but remains somewhere above the 1.682 zone, or the 200-day EMA, new investors could join in. If this time they can lift MAP above that 1.805 hurdle, the next potential target might be at 1.928, marked by the highest point of June.
The RSI is above 50, but remains somewhat flat. The MACD is above zero and its trigger line, and continues to point slightly higher. The two oscillators remain in the positive territory, this way supporting the above-discussed scenario.
Alternatively, if the share price slides and ends up moving below the aforementioned upside line and the 1.397 area, marked by the highest point of October, that may raise speculation for a possible continuation move lower. MAP may then drift to the 1.339 obstacle, a break of which could open the way to the 1.230 level, marked by the lowest point of October.
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