The technical picture of the Saint-Gobain stock (EPA: SGO) shows us that we should stand pat for now, as the share price continues to trade within a range, which is roughly between the 23.02 and 26.26 levels. We need to see a clear break through one of the sides of that range first, in order to consider the next directional move.
If the stock travels lower and breaks below the 23.02 hurdle, this would confirm a forthcoming lower low. Such a move may spook some new buyers from entering at that moment, and if this is the case, SGO may slide further south. That’s when we will aim for the 21.32 zone, a break of which could set the stage for a drop to the 19.86 level, marked by the high of March 24th.
The RSI just crossed below 50 and points a bit lower, which may be in line with the downside scenario. But the MACD is leaning more towards the neutral side, as it is remains below its trigger line, but above zero. For now, we will not put too much emphasis on our indicators and instead, wait for the stock to exit the range.
On the upside, if the upper bound of the aforementioned range, at 26.26, gets broken and the share price climbs above the 200 EMA, that may attract a few new buyers, who may enter the arena and help lift the stock higher. SGO may then drift to the 28.10 obstacle, a break of which could clear the way to the 30.14 level, marked by the high of March 10th.
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