The technical picture of the Energias de Portugal SA stock (ELI: EDP) on our daily chart shows that share price got pushed through a key resistance barrier, at 4.44, marked by the high of March 10th. This way, the stock established a new high for the month of March. At the same time, EDP is still trading above a short-term tentative upside line drawn from the low of February 24th. As long as the share price remains above that barrier and the upside line, we will stay positive, at least with the near-term outlook.
A further push north could bring the price closer to its next resistance area between the 4.61 and 4.64 levels, marked by the highest point of February and the high of January 20th respectively. EDP might stall there for a bit, or even correct lower. However, as we mentioned above, as long as the stock remains above the aforementioned upside line, we will continue aiming higher. If share price rises again and overcomes that resistance area, such a move may open the door for a test of the 4.75 hurdle, marked by the low of January 5th.
The RSI and the MACD are both pointing higher. Additionally, the RSI is above 50 and the MACD is still running above zero and the signal line. The two indicators show positive price momentum, which supports the scenario mentioned above.
Alternatively, if the stock breaks the previously discussed upside line and then falls below the support area, which is between the 4.20 and 4.22 hurdle, marked by the lows of March 15th and 24th, that may temporarily scare off some remaining buyers from the arena. EDP could travel to the psychological 4.00 zone, or even to the 3.90 level. That level marks the low of March 7th.
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