Fluidra SA (BME: FDR) is a major Spanish company, operating in the field of swimming pools and wellness equipment. Recently, the company announced that it expects ongoing growth, with an annual increase in sales of about 6%. The company is certainly betting on all epidemiological problems to go away soon, when people will be allowed to travel for holidays.
The company’s stock has been rising steadily since bottoming in March 2020. The share price had almost tripled its value from March of last year. From the technical side, FDR is still trading above a short-term tentative upside support line taken from the low of January 28th. As long as that line remains intact, we will continue targeting the upside.
If the stock stays somewhere below the 26-euro mark, the price may correct slightly lower, possibly making its way towards the aforementioned upside line. If that line does its job again and provides support, FDR could attract new buyers and rebound back to the 26.00 hurdle, which is marked by the inside swing low of April 15th. If the buyers are still active near that price, they might push the stock further north, possibly targeting the 26.95 level, which is the current all-time high. If the acceleration continues beyond that level, this will place FDR into the uncharted territory.
Looking at our oscillators on the 4-hour chart, the RSI and the MACD are somewhat in support of the above-mentioned scenario. The RSI is pointing slightly lower, but remains above 50. The MACD, although has moved a bit lower and sits below the trigger line, it continues to run above zero and point slightly higher.
In order to shift our attention towards lower levels, we would wait for a violation of the aforementioned upside line and break below the 24.30 hurdle, marked by the low of March 31st. This way, new buyers might get spooked from the arena for a bit and the stock could end up sliding further south. FDR may drift to the 23.85 obstacle, or to the 23.15 zone, marked by the low of March 19th. From there, we could see a small rebound, however, if the stock continues to trade somewhere below the aforementioned upside line, another slide might be possible. If this time the share price is able to bypass the 23.15 obstacle, the next potential target could be at 22.80, marked by the low of March 29th.
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