Looking at the technical picture of the Spain-based packaging company stock, Viscofan SA (MC:VIS), it seems that it might be preparing for another push higher, as the price is getting closer to its key resistance barrier, at 51.45. At the same time, VIS is trading above its medium-term tentative upside support line taken from the low of October 7th. However, before we may get comfortable with higher areas, we need to see a daily close above that 51.45 hurdle first, hence why we will take a cautiously-bullish approach for now.
As mentioned above, a daily close above the 51.45 zone may increase the stock’s chances of drifting higher, as more buyers could see a small window of opportunity to lead VIS higher. That’s when we will aim for the 53.15 obstacle, a break of which may test the 54.45 hurdle, marked by the high of April 26th, 2019. If that area is just seen as a temporary pit-stop for the buyers, a further push north could clear the way to the 56.40 level, which is the highest point of 2019.
Our oscillators, the RSI and the MACD, are somewhat in support of the above-discussed scenario. Although the RSI is currently flat, it remains above 50. The MACD recently moved above its trigger line and started slowly pointing higher, while sitting above zero.
Alternatively, if suddenly the price breaks below the aforementioned upside line and slides below its key support area, at 46.78, this may force a few existing investors to liquidate some of their positions, as the risk of a further decline may increase. If so, the stock could move to the 45.50 hurdle, or the 44.26 zone, marked by the low of October 25th. If there are still now new buyers found at that area, this might lead to another decline, which could test the 43.06 level. That level marks the high of October 17th.
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