In these difficult economic times, when the financial sector is not performing well, Banco Bilbao Vizcaya Argentaria SA (BME: BBVA) continues to put its emphasis on innovation and customer experience. Recently, BBVA launched a new line of credit cards, which have no usual information on them, like expiry date or a PAN number. Also, the card is made out of recycled plastic, which also covers the environmental commitments of the business. BBVA is the first bank in Spain to introduce such card security features. It seems that the bank is really focusing on having a status of a “role model” for other credit providers, by improving its fraud-prevention techniques. BBVA is also making a bet on capturing the attention of the new generation of consumers, who will be even more technologically literate.
Looking at the technical picture of the BBVA stock on our 4-hour chart, we can see that today the share price popped above its key resistance area, at 2.54, which is the highest point of October. Such a move confirmed a forthcoming higher high, increasing the stock’s chances of drifting further north. Also, if the stock stays above that 2.54 hurdle, or a short-term tentative upside support line taken from the low of October 15th, this might help attract a few new buyers into the game, hence our positive approach, at least for now.
A further push higher could bring BBVA to its next possible resistance area, at 2.63, marked by the highs of August 28th and 31st. The stock might stall there temporarily, or even correct back down slightly. However, as mentioned above, if it remains above the previously discussed 2.54 zone, the buyers may jump in again and drive the share price higher. If this time BBVA is able to overcome the 2.63 barrier, the next possible target could be at 2.76, marked by the high of August 12th.
The RSI and the MACD seem to be in support of the above-discussed scenario, as both indicators are currently pointing higher. Also, the RSI is above 50 and the MACD is above zero, and its trigger line, showing positive price momentum.
If, by any chance, the stock breaks the aforementioned upside line, this may spook new buyers from entering any time soon. BBVA might then drift to the 2.34 obstacle, or to the 2.30 zone, marked by the lows of October 28th and 29th. The slide could get halted near the latter area, but if there are still no new buyers around, this may lead to a further decline, possibly bringing the stock to the 2.24 level. That level marks the low of October 14th and an intraday swing low of October 15th.
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