Looking at the technical picture of the Naturgy Energy Group SA stock (BME: NTGY) on our daily chart, we can see that the share price is still balancing above a medium-term tentative upside support line taken from the low of October 30th. However, from around the beginning of February, the stock is struggling to overcome the 21.55 barrier, which continues to provide strong resistance. Although there are strong indications for a possible further move north, we would still prefer to wait for a break and a daily close above that 21.55 barrier, before getting comfortable with further advances.
If, eventually, NTGY pops above that 21.55 hurdle, this will confirm a forthcoming higher high, possibly clearing the way towards higher areas. We will then aim for the 21.92 obstacle, marked near the lows of January 26th and 27th, where the price might stall for a bit. It may even retrace back down, however, if the stock continues to balance somewhere above the aforementioned upside line, new buyers could remain interested. If so, another push could be possible for NTGY, possibly even bringing it above the 21.92 obstacle, and targeting the 22.37 zone, marked by the high of January 28th. Slightly above it lies another resistance area, which could potentially be tested, and that’s the 22.57 level, marked by the current highest point of this year.
The RSI and the MACD are both pointing higher, supporting the upside scenario. In addition to that, the RSI remains above 50 and the MACD continues to run above zero and its trigger line. The two oscillators indicate increasing upside price momentum.
On the downside, if the stock breaks the previously discussed upside line and then falls below the 21.11 zone, marked by this week’s low, that may spook new buyers away from the arena for a while. NTGY could then drop to the 20.62 area, marked by the lowest point of April, a break of which might set the stage for a move to the 20.17 level. That level marks the lowest point of February.
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