Air Liquide SA (EPA: AI) is a French multinational supplier of industrial gases and various gas-related services. The company has its presence in the medical, chemical and electronics industries. Recently, the company joined forces with Siemens Energy in order to develop hydrogen and electrolyzer technologies in Europe. Although there might be a few years until any real progress could be seen from this joint venture, still, the company stock might have already earned its place on an investor watchlist.
The technical picture on our 4-hour shows that AI is currently trading below its key resistance area, between the 137.50 and 137.80 levels, marked near the highs of February 4th and 2nd respectively. At the same time, the stock is balancing above a short-term tentative upside support line drawn from the low of January 28th. The current price action seems to be forming an ascending triangle, which, according to the TA rules, tends to break to the upside. However, until we see a break of the upper bound of that formations, we cannot get comfortable with higher areas. We will take a cautiously-bullish approach, for now.
If, eventually, the share price gets pushed above the 137.80 barrier, marked near the highest point of January and the current highest point of February, this will confirm a forthcoming higher high, possibly opening the door to further advances. That’s when we will target the 139.30 obstacle, a break of which could open the way to the 140.40 level, marked by the high of November 18th, 2020.
Although the RSI and the MACD are currently pointing a bit lower, they are still somewhat in support of the above-mentioned scenario. The RSI remains above 50 and the MACD continues to run above zero, despite being fractionally below its trigger line, at the time of writing.
In order to shift our attention to some lower areas, we would need to see a break of the aforementioned upside line and then a push below the 135.50 hurdle, marked by the current lowest point of February. This way the stock could fall to the 133.60 zone, a break of which may send AI to the 132.95 level. That level marks the inside swing high of January 25th.
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