After peaking in the beginning of June, near the 4-euro mark, the stock of the Mediaset España Comunicación SA company (BME: TL5) drifted back down, wiping out all the gains made in the beginning of the month. However, it looks like TL5 is starting to carefully form higher lows, which might be seen as a bullish indication. The share price is now also balancing above a short-term upside support line taken from the low of June 25th. Although there is some positivity in the near-term outlook, we would prefer to wait for a break above the high of last week, at 3.29, before aiming for even higher areas.
A strong move above that 3.29 barrier would confirm a forthcoming higher high, potentially inviting a few extra buyers into the game. The stock might then travel to the 3.38 hurdle, marked by the high of June 16th, or to test the 200 EMA on our 4-hour chart, which may provide a temporary hold-up. If TL5 continues to float above the aforementioned upside line, new investors could jump in and try to lift the price above the 3.38 hurdle. If they manage to accomplish that, this may clear the way to the next potential resistance area, at 3.60, marked by the lows of June 8th and 9th.
The RSI and the MACD recently started pointing a bit higher. The RSI is indicating a rising upside momentum, as it sits above 50. The MACD, although sitting above its trigger line, remains fractionally below zero, which puts a bit of cautiousness into the near-term outlook. That said, both indicators are somewhat in support of the idea of waiting for a break above the 3.29 barrier first, before examining higher areas.
Alternatively, if the previously-mentioned upside line breaks and the price falls below the 3.08 hurdle, marked by the low of June 29th, that may spook potential new investors from entering, as such a move might clear the path towards lower areas. The stock could then travel to the 3.03 obstacle, or even to the 2.94 zone, marked by the low of June 25th. If the buyers are still nowhere to be found, this might cause TL5 to drop further, possibly aiming for the 2.85 level, which is the lowest point of May.
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