Looking at the technical picture of the Siemens Gamesa Renewable Energy SA stock (BME: SGRE) on our 4-hour chart, we can see that it continues to move sideways, roughly between the 12.86 and 13.94 levels. The share price has been stuck there from around the end of March. Although today SGRE is making its way closer to the upper side of the range, still, as long as the price remains between those bounds, we will stay neutral.
If SGRE eventually breaks the upper side of the aforementioned range and manages to close a trading session above it, this may increase the stock’s chances of moving further north. More buyers might see this as a good opportunity to jump in and drive the share price higher, where the next possible resistance barrier could be near the 14.35 zone, marked by the high of March 25th. The stock could stall around there for a bit, or even retrace slightly lower temporarily. However, if SGRE continues to float above the upper side of the range, at 13.94, new buyers may enter and help lift the price higher again. If this time the stock is able to overcome the 14.35 obstacle, the next potential resistance level we could aim for could be at 14.74, marked by the high of March 6th.
Our oscillators, the RSI and the MACD, are showing a slight rise in the upside momentum, which could support the idea of seeing some higher levels getting tested in the near term. The RSI is slightly above 50 and the MACD has just moved above zero and its trigger line. That said, as mentioned above, in order to examine higher areas, we will wait for a break above the upper side of the previously-discussed range.
Alternatively, if SGRE drops heavily and violates the lower side of the range, at 12.86, this will confirm a forthcoming lower low, which may spook potential new buyers temporarily. That’s when the stock could slide to the 12.07 obstacle, a break of which might clear the path to the 11.64 and 11.60 levels. Those levels mark the intraday swing highs of March 16th.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.