Looking at the technical picture of the Schneider Electric stock (EPA: SU) on our 4-hour chart, we can see that after reversing higher in the beginning of March, the share price moved north and climbed above all of the EMAs. That said, the stock found strong resistance near the area between the 154.75 and 156.15 levels, marked by the highest point of February and the current highest point of March respectively. In order to aim for higher levels, we would prefer to wait for a breakout above that resistance area first.
If, eventually, that breakout happens, this will confirm a forthcoming higher high, possibly opening the door for further advances. We will then aim for the high of January 20th, at 162.20, a break of which could set the stage for a move to the 168.85 zone, which is the high of January 13th.
The RSI is currently flat but remains above 50. The MACD, although pointing slightly to the downside and coinciding with the signal line, continues to run well above zero. Overall, the two indicators are still showing positive price momentum, which supports the scenario above.
Alternatively, if the share price drops all the way below the 142.55 hurdle, marked by the low of March 15th, that would also place the stock below all of the EMAs, potentially spooking some buyers from the arena. SU could end up falling to its next support area between the 137.05 and 138.35 levels, marked by the inside swing high of March 8th and the low of March 11th respectively. If that area is not able to provide strong support and breaks, that’s when we will aim for the 131.95 zone, which is the inside swing high of March 7th.
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