The technical picture of the Siemens Gamesa Renewable Energy SA (BME: SGRE) stock on our 4-hour chart, shows that in the middle of this week, the share price received a boost, which led to a strong move above all the EMAs. The stock also shifted further away from a short-term tentative upside support line drawn from the low of May 11th. For now, we will stay positive, at least with the near-term outlook.
Given the recent sharp move to the upside, there might be a possibility to see a small correction lower. However, if SGRE remains somewhere above the aforementioned upside line, we may continue aiming higher overall. The stock could push back to the current highest point of this week, at 16.88, a break of which would confirm a forthcoming higher high, potentially inviting more buyers into the game. The share price may rise to the 17.53 obstacle, or even all the way to the 18.82 zone, marked by the high of March 17th.
The RSI is pointing slightly to the downside, but it remains above 50. The MACD is still moving higher, while running above zero and the trigger line. In general, the two oscillators show positive price momentum, supporting the idea discussed above.
Alternatively, a price-drop below the previously discussed upside line and also below the 14.16 hurdle, marked by the high of May 17th, could spook some buyers from the arena for a while, possibly opening the door towards the 13.33 obstacle, which is the low of May 17th. If the slide continues, the next target could be at 12.55, marked by the current lowest point of May.
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