The GALP Energia SGPS SA stock traded lower on Thursday, after hitting resistance at 10.10 on Wednesday. The stock has been in a sliding mode since March 15th, when it hit the 10.85 zone, but, overall, it continues to trade above the upside support line taken from the low of October 30th. With that in mind, we will take a cautiously positive approach.
The stock may continue correcting lower for a while more, but we see decent chances for the bulls to take charge again from near the crossroads of the aforementioned upside line and the 9.14 territory, which is marked as a support by the low of February 26th. If so, we may see a recovery back near the 10.10 hurdle, the break of which may allow extensions towards the peak of March 15th, at 10.85.
Shifting attention to our short-term oscillators, we see that the RSI, already below 50, has turned down and now looks to be heading towards 30, while the MACD lies below both its zero and trigger lines, pointing south as well. Both indicators detect downside speed, adding to our view for some further correction before then bulls decide to take the reins again.
However, in order to start examining a bearish trend reversal, we would like to see a clear dip below 8.75, which provided decent resistance between February 10th and 12th. The stock would already be below the aforementioned upside line and thus, we may see declines towards the low of February 1st, at around 8.10. If that barrier is not able to stop the slide either, then its break may pave the way towards the 7.47 territory, marked as a support by the inside swing high of November 3rd.
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