The technical picture of the Spanish pharmaceutical and chemical manufacturer Grifols SA stock (BME: GRF) on our daily chart, shows that the share price has been declining heavily from around mid-June. GRF is trading below a short-term downside resistance line taken from the high of June 11th. If the stock continues to respect that line, the price may continue with its journey south, at least for a while more.
A drop below the current low of today, at 20.99, would confirm a forthcoming lower low and might open the way towards lower areas, as new buyers may get spooked from the arena for a while. GRF could then falls to the 20.48 obstacle, or to the 20.18 zone, marked by the inside swing high of March 9th. If the stock temporarily finds a hold-up near that hurdle, it may rebound back up a bit. That said, If the aforementioned downside line continues to hold, another decline might be possible. GRF could travel back to the 20.18 obstacle, a break of which would confirm a forthcoming lower low, possibly setting the stage for a move to the 19.56 level, marked by the inside swing high of March 10th.
The RSI and the MACD are both pointing lower, at the time of writing. Additionally, the RSI remains well below 50 and the MACD continues to run below zero and its trigger line. Such a picture shows negative price momentum, which is in-line with the scenario discussed above.
Alternatively, if the previously mentioned upside line breaks and the share price moves above the 21.79 zone, marked by the current highest point of this week, that may attract more new buyers into the game, possibly opening the door towards higher areas. GRF might then travel to the 22.47 hurdle, which is the high of July 6th, or to the 22.98 zone, marked near the highs of June 28th and July 1st. The stock may stall near the latter level, however, if the buyers are still active, they could drag the share price further north, potentially aiming for the 23.35 area. That area marks the high of June 30th.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.