Semapa Breaks the Upper Bound of a Range

The Semapa Sociedade de Investimento e Gestão (ELI:SEM) stock traded higher today, breaking above 12.22, which is the upper bound of the sideways range it had been trading within since February 19^th. This, combined with the fact that the stock is also trading above the tentative upside support line drawn from the low of October 30^th, paints a positive short-term picture.

We believe that the break above 12.22 may have encouraged the bulls to sail north towards the 12.96 area, which is defined as a resistance by the February 5^th and 6^th, 2020. If they are not willing to stop there, then the next level to consider as a resistance may be the high of January 20^th, 2020, at 13.33.

Taking a look at our short-term oscillators, we see that the RSI moved higher and now looks ready to cross above 70, while the MACD lies above both its zero and trigger lines. Both indicators detect positive momentum and support the notion for further advances in this stock.

Now, in order to start examining the case of a bearish correction, we would like to see a dip below the lower end of the aforementioned range, at 11.50. This would confirm a forthcoming lower low and may initially target the 11.00 area. Another break, below 11.00, may see scope for extensions towards the upside line taken from the low of October 30^th, or the psychological round number of 10.00.

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