After dropping heavily at the end of February, together with the rest of the global equities, the Distribuidora Internacional de Alimentación SA stock (BME: DIA) became quite attractive for new investors, at around EUR 0.06 per share. From around mid-March, DIA started climbing back up rapidly and by the beginning of April it hit the 15-cent mark. From there, the share price corrected slightly lower, where it found support near a short-term upside support line taken from the low of March 10th. As long as the stock remains above that upside line, there is a good chance for DIA to continue moving in the upwards direction. We will remain somewhat bullish, at least for now.
If the stock makes a run above the high of last week, at 0.1346, this will confirm a forthcoming higher high and more buyers may join in. We will then examine a possible rise to the 0.1440 obstacle, a break of which could open the door for a move to the 0.1516 level again, which is marked by the current highest point of this year.
For now, the RSI and the MACD on our 4-hour chart seem to be in favour of the above-discussed scenario. The RSI is pointing higher, while balancing above 50. The MACD is also slowly pushing higher, while running above its zero and trigger lines. Both indicators suggest there could be more upside, at least in the near term.
Alternatively, if the share price breaks the aforementioned upside line and slides below the 0.1252 hurdle, which is yesterday’s low, this may spook some new buyers. DIA could then drift to the 0.1151 area, which is the low of April 15th. The stock could stall there temporarily, however, if there are still no new buyers in sight, the share price may continue with its journey south, possibly aiming for the 0.1011 level, marked by the low of March 31st.
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