Looking at the technical picture of the Carrefour SA stock (PA: CA) on our daily chart, we can see that after reversing higher in the beginning of December 2021, the share price is now slowly grinding higher, while balancing above a short-term tentative upside support line taken from the low of December 2nd. That said, the stock is currently finding resistance in the area between the 18.31 and 18.63 levels, marked by the highest points of February and January respectively. In order to get comfortable with the idea of CA moving further north, we would prefer to wait for a breakout above that resistance area first.
If, eventually, the stock breaks above the 18.63 barrier, this will confirm a forthcoming higher high. Such a move could invite more buyers into the game, possibly clearing the way towards the 19.73 hurdle, marked by the highest point of 2018, where a temporary hold-up might occur. If the buying doesn’t stop there, the next potential target could be at 21.30, which is marked near the lowest points of March and May of 2017.
The RSI and the MACD are both pointing higher. Also, the RSI continues to run above 50 and the MACD had just popped above the signal line, while continuing to sit above zero. The two indicators show positive price momentum, which support the scenario discussed above.
Alternatively, if the share price breaks the aforementioned upside line and then falls below the 16.37 hurdle, marked by the lowest point of February, that may spook some new buyers from stepping in, as the stock would also drop below the 200-day EMA. CA might end up traveling towards the 15.12 obstacle, or even to the 14.53 zone, marked by the lowest point of December 2021.
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