Cellnex Telecom SA (BME: CLNX) is Europe’s largest mobile phone towers operator, with a market capitalisation of approximately 24bn euros. The company hit the news recently, after it launched a 7bn euro capital increase, in order to be able to fund the acquisition of Hivory, which is a French telecoms company. The Spanish company is planning to spend an additional 9bn euros by 2025, in order to add more assets to its portfolio through acquisitions. Before the capital increase, Cellnex agreed to sell its 2.5% stake to a Singapore wealth fund GIC, which now owns 8.07% of Cellnex in total.
From the technical side, looking at our daily chart, CLNX pushed above a medium-term downside resistance line this week. The line is drawn from the high of November 5th and could now be seen as a possible support line, in case the stock retraces back down. At the same time, the share price is balancing above a short-term upside support line taken from the low of March 8th. We will remain positive, at least for now.
A further push north could bring the stock to the 51.02 barrier, marked by the highest point of February, where the price could stall for a while. It may even retrace back down a bit, but if the aforementioned upside line continues to hold, the stock might rise again, as new buyers could join in. If this time CLNX is able to overcome the 51.02 obstacle, this may open the door for further advances, possibly aiming for the 52.90 hurdle, or the 56.62 level, marked by the highs of November 30th and 13th respectively.
The RSI and the MACD are clearly pointing higher. In addition to that, the RSI remains above 50 and the MACD is above zero and its trigger line. Both oscillators indicate rising upside price momentum, which supports the above-mentioned scenario.
Alternatively, if the stock suddenly falls below both aforementioned lines, the upside and the downside one, this could spook new buyers from entering the field for a while. An additional drop below the 43.85 hurdle, marked by the low of March 22nd, might strengthen the downside scenario, potentially opening the door for a move to the 41.47 zone, marked by the lowest point of February. However, if that zone fails to provide support and breaks, the next possible target might be at 39.21, marked by the lowest point of March.
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