The technical picture of the Indra Sistemas stock (BME: IDR) on our daily chart shows that, after a failed attempt to stay above a short-term downside resistance line drawn from the high of December 14th, the share price depreciated and moved back below all the EMAs. That said, the stock is still trading above a key support area, at 8.58, marked by the lowest point of January. Although IDR is showing willingness to move further south, we would prefer to wait for a break below that support area first.
If, eventually, that drop happens, this will confirm a forthcoming lower low, potentially opening the door to some lower levels. IDR may then move to the 8.26 hurdle, marked by the high of July 23rd, a break of which could set the stage for a move to the 7.75 zone. That zone marks the low of July 27th.
The RSI and the MACD are pointing lower. The RSI remains below 50 and the MACD, despite being fractionally above the signal line, continues to run below zero. The two oscillators seem to support the scenario mentioned above.
Alternatively, if the stock breaks the short-term downside resistance line and then climbs above the 9.31 barrier, marked by the highest point of February, that might signal a change in the direction of the current trend. At the same time IDR could also get placed above all the EMAs, this way possibly attracting more buying interest. That’s when the stock may travel to the highest point of January, at 9.76, a break of which could set the stage for a move to the 10.14 level, marked by the high of December 15th.
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