The technical picture on the daily chart of Credit Agricole’s stock (EPA: ACA) seems to be giving positive signs for potential new buyers. This morning, the share price managed to break above its medium-term tentative downside resistance line, taken from the high of May 2nd, and also the 200-day EMA. Although so far, everything looks promising for the stock, we need to wait for a daily close above both of those obstacles, before we could get excited about further upside. This is why for now we will remain cautiously bullish.
If ACA continues to rise and pushes through some of its key resistance barriers, at 11.08 and 11.21, marked by the highs of August 1st and July 5th, this may attract more buyers into the game. Such a move might clear the path to the 11.43 zone, which marks the peak of July. This is where the price might initially stall, or it could be forced to correct back down slightly. That said, if ACA continues to trade above the 11.00 mark, this could be seen as another positive sign and the stock might bypass the 11.43 obstacle and travel to the 11.91 level, marked by the low of April 25th
Our oscillators, the RSI and the MACD, both are indicating positive price momentum. The RSI is above 50 and continues to point higher. The MACD is above zero and its trigger line, and at the same time points to the upside. Both indicators support the upside, for now.
Alternatively, in order to start examining the downside, ideally, we need to see a break of the short-term tentative upside support line drawn from the low of August, and a price-fall below the 10.37 hurdle. That hurdle marks the high of September 3rd and the low of September 4th. This is when we could target the next possible support area, between the 9.98 and 10.07 levels, a break of which could open the door for a further slide towards the 9.67 target, marked by the lowest point of August.
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