Looking at the technical picture on the 4-hour chart of one of the largest French telecommunication companies, Orange SA (EPA: ORA), we see that it has been slowly grinding higher since its reversal to the upside around mid-March. However, the stock seems to be struggling to stay above its key resistance area, between the 11.510 and 11.665 levels. We will take a cautiously-bullish approach, at least for now, but in order to get comfortable with higher areas, we will wait until we see ORA closing a trading day above that resistance zone.
Eventually, if the share price pops above the aforementioned resistance zone and has a daily close above it, that may attract a few more buyers into the game. Such a move might help ORA to accelerate towards its next potential resistance area, at 12.030, marked by the low of March 3rd and 6th. The stock could receive a hold-up around there, which may force the share price to correct slightly lower. That said, if ORA continues to float above the previously-discussed resistance zone, which now could become a good support area, this may attract new buyers again and the stock might get a boost. If this time the 12.030 hurdle surrenders and breaks, the next possible resistance level to aim for might be at 12.585, which is the highest point of March.
The RSI on our 4-hour chart is somewhat in support of the upside scenario as it is slightly above 50 and points a bit higher. However, the MACD is currently flat, coinciding with its trigger and zero lines, which confirms our cautious approach, for now.
Alternatively, if the share price breaks a short-term tentative upside support line taken from the low of March 19th, and also slides below the 11.005 hurdle, marked by the current low of this week, this may temporarily spook new buyers from entering the arena. We will then aim for the 10.610 obstacle, a break of which might clear the path to the 10.370 level, which is the low of March 19th.
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