Looking at the technical picture of the Prosegur Compania de Seguridad SA stock (BME: PSG) on our daily chart, we can see that the price is currently resting near the highest point of December, at 2.634, and near the 200-day EMA. At the same time, PSG is trading well above a short-term tentative upside support line drawn from the low of October 30th. Even if the stock retraces slightly lower, but remains above that upside line, we will stay positive, at least with the near-term outlook.
If PSG is able to move further above the previously-mentioned December high, at 2.634, this could lead the price to its next possible resistance area, at 2.882, marked by the low of March 11th, which may provide a temporary hold-up. The stock might hang around there or correct a bit lower, however, if it continues to trade above the 200-day EMA, then there is a good chance we could see another round of buying. If so, PSG could overcome the 2.882 obstacle and aim for the 3.027 hurdle, or the 3.190 level. Those areas are marked by the low of March 9th and the high of March 10th.
Although the RSI and the MACD are currently flat, they still show increasing upside speed, as the RSI remains above 50 and the MACD is above zero and its trigger line.
Alternatively, in order to keep new buyers from entering for a while, the price would have to break the aforementioned upside line and then drop below the current lowest point of January, at 2.368. Such a move might increase the stock’s chances of drifting further south. PSG may then slide to the 2.236 territory, or even to the 2.120 zone, marked by the highest point of October. If there are still no new buyers near that price, this could result in a further decline, possibly bringing the stock to the 1.944 level, marked by the low of November 6th.
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