Looking at the technical picture of the Solaria Energia stock (BME: SLR) on our 4-hour chart, we can see that from around the end of May, the share price is slowly grinding higher while trading inside a rising channel pattern. But after a correction lower, the stock is once again pushing north, after rebounding from the lower side of that channel. As long as the share price remains inside the pattern, we will continue aiming higher overall.
Another slight push up could bring the SLR to the next possible resistance area, at 17.05, marked by the low of July 14th, where a temporary hold-up could occur. Even if we see a slide back down, if the stock remains somewhere above the lower bound of the aforementioned channel, new buyers could jump in and take advantage of the lower price. SLR may get lifted to the 17.05 zone again, a break of which might lead to a test of the current highest point of July, at 17.82. If the buying doesn’t end there, the stock could overcome that 17.82 obstacle and aim for the upper bound of the channel.
The RSI and the MACD are both pointing higher. Also, the RSI remains above 50, showing clear positive price momentum. However, the MACD is above its trigger line, but sits slightly below zero. Nevertheless, the MACD seems to be supporting the idea mentioned above, of seeing further advances in the near future.
Alternatively, if the stock drops heavily, breaks the lower side of the channel and then falls below the 15.41 territory, that would confirm a forthcoming lower low, possibly scaring off new buyers for a while. SLR could then travel to the 14.91 obstacle, marked by the current lowest point of July, a break of which might set the stage for a move to the 14.36 and 14.21 levels. Those levels mark the lows of June 7th and 10th respectively.
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