The technical picture of the EDP Renováveis SA stock (ELI: EDPR) on our 4-hour chart shows that the share price managed to climb above a short-term downside resistance line taken from the high of April 23rd. That said, the stock still remains fractionally below the 100 EMA and the 200 EMA. All this suggests that there might be more upside in the near term, however, we would first prefer to wait for a push above yesterday’s high, at 19.08, before getting a bit more comfortable with further advances.
If EDPR does make a run above yesterday’s high, at 19.08, this will confirm a forthcoming higher high, potentially clearing the way towards higher areas. The stock might then travel to the 19.62 obstacle, marked by the high of May 7th, which may temporarily halt the price acceleration. That said, if there are still enough new buyers, EDPR could continue getting pushed further north, potentially aiming for the 20.22 level, marked by the current highest point of May.
The RSI, although a bit flat at the time of writing, remains above 50, which indicates positive price momentum. The MACD, despite sitting just fractionally below zero, is pointing slightly to the upside, while running above its trigger line. The two indicators support the idea of seeing a move higher in the near term, but before that could happen, a push above 19.08 would be needed.
Alternatively, if the share price falls back below the aforementioned downside line, this could spook new buyers from the arena for a while, especially if the stock drops below the 18.20 hurdle, marked by the current lowest point of this week. If such a move occurs, EDPR may slide to the 17.85 zone, which is the low of May 14th. If the stock still cannot attract new buyers at that price, it may drift lower, potentially targeting the 17.62 obstacle, or the 17.42 level, marked by an intraday swing high of May 12th.
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