From the technical perspective, the stock of the Acerinox SA (BME: ACX) is now seen trading below a short-term tentative downside resistance line taken from the high of May 10th. However, as we can see, the slide got a temporary hold-up near a key support area between the 11.48 and 11.57 levels. Those levels mark the lowest point of May and the low of yesterday respectively. There is a good chance we may see a further slide, but in order to get comfortable with that scenario, a drop below that support area would be needed.
If, eventually, the share price falls below the 11.48 hurdle, this will confirm a forthcoming lower low and such a move might open the way towards the 11.25 zone, marked by the low of April 12th. The stock could stall there for a bit, however, if there are still no new buyers near that price, ACX may end up sliding again and aiming for the 11.09 obstacle, or the 10.96 level, marked by the lowest point of April.
The RSI is currently flat and remains below 50. The MACD, despite pointing slightly to the upside, remains fractionally below the trigger line and well below zero. Both oscillators indicate negative price momentum, which supports the idea mentioned above.
On the upside, if the aforementioned downside line breaks and the share price pops above the 11.85 barrier, marked by the high of May 20th, that could interest more new buyers. ACX might then get pushed to the high of May 18th, or to the current highest point of May, at 12.43.
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