The technical picture of the Credit Agricole SA stock (EPA: ACA) on our 4-hour chart shows that, today, the share price got a boost and broke above a short-term tentative downside resistance line taken from the high of December 7th. Although such a move might be seen as a positive, in order to aim for higher areas, we would prefer to wait for break above the 12.55 barrier, marked by the current highest point of December.
If, eventually, the stock pops above that 12.55 barrier, this will confirm a forthcoming higher high, possibly opening the door to some further upside and more buyers could join in. ACA may then travel to the 12.80 hurdle, marked by the high of November 22nd, where a temporary hold-up might occur. That said, if the buyers remain strong, they could send the share price further north, where the next target may be at 13.04, which is the high of November 11th.
The RSI is currently flat but remains above 50. The MACD had just pushed above zero, while continuing to run above the trigger line and pointing higher. The two indicators show positive price momentum, which supports the idea mentioned above.
Alternatively, if the stock somehow falls back below the previously mentioned downside line and also drops below the 12.26 hurdle, marked by the high of December 22nd, that may temporarily spook some buyers from the arena. ACA might then slide to the 11.95 obstacle, a break of which may set the stage for a test of the 11.71 level, which is the current lowest point of December.
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