The technical picture of the Iberdrola SA stock (BME: IBE) shows that today, the share price made a strong move higher, as it pushed away from a short-term upside line and then climbed above the 10.150 barrier, marked by the highest point of last week. If the stock continues to trade above that barrier, we will stay positive, at least for now.
A further move north could bring IBE closer to its next possible resistance area, between the 10.305 and 10.330 levels, which mark the high of January 7th and the low of January 4th respectively. The stock might stall there for a bit, but if the buyers stay active, they could push the price above that resistance area, this way aiming for the 10.510 level. That level is marked by the current highest point of January.
The RSI is pointing higher, while running above 50. This comes in line with the scenario above, as the indicator shows positive price momentum. The MACD, on the other hand, has just started pointing higher and is now running above the trigger line, but it still remains below the zero line. The MACD shows that the strength of the downside momentum is slowly diminishing, and that the indicator may support the upside scenario later on.
In order to shift our attention to some lower areas, we would prefer to wait for a break of the aforementioned upside line and for a price-drop below the 9.865 hurdle, marked by the current lowest point of this week. IBE could then drift to the current lowest point of January, at 9.785, a break of which might send the stock to the 9.680 zone, marked by an intraday swing high of December 20th. If the slide doesn’t stop there, the next possible target may be somewhere near the 9.492 level, which is the lowest point of December.
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