Looking at the technical picture of the Fluidra SA stock (BME: FDR) on our 4-hour chart, we can see that the share price is currently moving higher, while trading above a short-term tentative upside support line drawn from the low of March 9th. Also, it seems that from around the beginning of February, the stock has been forming a double bottom pattern, with the so-called “neckline” being at the 27.50 level, marked by the current highest point of March. Although there is a strong indication for a possible further move north, we would prefer to wait for a break above that “neckline” first.
A push above the 27.50 barrier would confirm a forthcoming higher high, possibly setting the stage for further advances, as more buyers could see this as a good opportunity to step in. FDR might then travel to the 29.25 hurdle, which is the highest point of February, where a temporary hold-up could occur. If that hurdle is not able to halt the advance, the next potential target may be near the 30.85 zone, which is the high of January 20th.
The RSI and the MACD are both pointing higher. Also, the RSI continues to run above 50 and the MACD is still sitting above the signal line, while continuing to float above zero. The two indicators show positive price momentum, which support the scenario discussed above.
On the downside, a break of the aforementioned upside line may open the door for a move towards the 24.50 hurdle, which is the low of March 11th. If that hurdle is not able to stop the slide, the next possible support area could be between the 22.85 and 23.2 levels, marked by the lowest point of February and the current lowest point of March.
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