Looking at the technical picture of the Bouygues SA stock (EPA: EN) on our daily chart, we can see that after finding resistance near the 34.52 barrier, the price corrected back down a bit, but remained above a steep short-term upside line taken from the low of October 28th. As long as the stock stays above that upside line, we may continue targeting the upside. However, in order to get a bit more comfortable with that idea, we would prefer to wait for a break above EN’s key resistance area, which is between the 34.52 and 35.12 levels, marked by the high of last week and the highest point of August respectively.
If, eventually, the share price does move above the previously mentioned resistance area, this will confirm a forthcoming higher high, possibly opening the door for a further move towards the 37.15 hurdle. That hurdle is marked by the highest point of March, which could temporarily stall the upmove. If so, the stock might even retrace slightly lower, however, if it remains somewhere above the 35.12 zone, new buyers may step in and lift EN up again. If the share price accelerates once again and this time breaks the 37.15 barrier, the next potential target could be at 38.29, marked by the low of February 18th.
The RSI and the MACD on our daily charts are still in the positive territory. The RSI is above 50 and points slightly to the upside. The MACD, although a bit flat, remains above zero and fractionally above its trigger line. The two oscillators seem to support the idea discussed above.
Alternatively, if the stock breaks the aforementioned upside line and slides below the 32.31 hurdle, which is the low of November 13th, and the 31.76 zone, marked by the highest point of October, that may spook new buyers from entering the game for a while. EN could end up sliding to the 30.09 obstacle, a break of which might set the stage for a test of the 28.15 level, marked by the low of October 27th and the high of October 29th.
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