Looking at the technical picture of the Capgemini SE stock (EPA: CAP), we can see that this morning it opened with a small gap to the upside, which was enough to bring CAP above its short-term tentative downside resistance line drawn from the high of September 16th. At the same time, the stock is now trading comfortably above all of its EMAs on our 4-hour chart, suggesting there could be more upside to come. For now, will take a positive approach and target slightly higher areas, at least in the near term.
If the share price makes a further run higher, away from that downside line, the stock might end up testing the 111.95 hurdle, marked by the high of October 20th. Initially, CAP may find good resistance around there, causing the stock to correct back down a bit. That said, if the price stays somewhere above the 108.30 hurdle, or the aforementioned downside line, we may see another uprise. The stock could travel back to the 111.95 obstacle, a break of which might set the stage for a push to the 114.25 zone, which is the highest point of October, or to the 116.35 level, marked by the high of September 23rd.
Both the RSI and the MACD are currently pointing higher. In addition to that, the RSI is above 50 and the MACD is above zero and its trigger line. All this shows an increasing upside price momentum, which supports the above-discussed scenario.
Alternatively, if the stock somehow manages to drop back below the previously discussed downside line and also falls below the 106.75 hurdle, marked by the high of October 27th, that could temporarily spook new buyers from entering. CAP might drift to the 102.35 hurdle, a break of which may lead the share price to the 98.95 level, marked by the high of October 30th.
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