Looking at the technical picture of the Credit Agricole SA stock (EPA: ACA) on our daily chart, it shows that after finding support, at 10.97 in mid-July, the share price reversed higher and is now trading above a short-term tentative upside support line taken from the low of July 19th. That said, the recent upmove was halted at the resistance area between the 12.35 and 12.41 levels, marked by the highest point of August and the current highest point of September respectively. In order to get comfortable with further upside, a push through that resistance area would be needed. Hence our somewhat positive approach for now.
If, eventually, the stock jumps above the 12.41 barrier, this will confirm a forthcoming higher high, possibly attracting more buying interest. ACA might travel to the 12.62 obstacle, or to the 12.94 zone, marked by the low of May 13th, where a temporary hold-up could occur. However, if there are still enough buyers at that price, the stock may rise to the 13.21 zone, or even to the 13.48 level, which is the current highest point of 2021, reached in May.
The MACD seems to support the upside scenario, as it points higher, while running above zero and its trigger line. However, in regards to the RSI indicator, despite sitting above 50, it currently points to the downside, this way suggesting that it is inline with the idea of waiting for the above-mentioned breakout. Nevertheless, the two oscillators show positive price momentum overall.
Alternatively, if the stock breaks the aforementioned upside line and then falls below the 11.98 hurdle, marked by the low of August 27th, that could force some buyers to abandon the field temporarily. ACA might then drift to the 11.62 obstacle, or to the 11.37 territory, which is the inside swing high of July 20th. If there are still no new buyers around that price, the stock may slide further, possibly aiming for the lowest point of July, at 10.97.
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