The Iberdrola Stock Is Showing Signs Of Life | Technical Analysis
Looking at the technical picture of the Iberdrola SA stock (BME: IBE) on our 4-hour chart, we can see that after reversing to the upside in the first days of July, the share price managed to overcome a short-term tentative downside resistance line drawn from the high of May 26th. At the same time, the stock continues to trade above a short-term tentative upside support line taken from the low of June 30th. As long as IBE trades above both of the lines, we will continue aiming higher.
Given that the share price had already climbed above one of its resistance areas, at 10.63, marked by the inside swing low of June 21st, this may attract more new buyers into the game, potentially clearing the way towards higher areas. That’s when we will aim for the 10.88 hurdle, marked by the high of June 18th, where a temporary hold-up could happen. That said, if the buyers remain active, they might lift IBE even higher, possibly targeting the 11.01 level. That level is marked by the high of June 16th. Slightly above it sits another target, which may get tested, and that is the 11.07 area, which is the highest point of June.
The RSI and the MACD are both pointing higher. At the same time, the RSI is still above 50 and the MACD remains above zero and its trigger line. The two indicators are showing a rising speed of the price, which supports the above-discussed scenario.
Alternatively, if share price drops below both of the previously mentioned trendlines and then also falls below the 10.37 hurdle, marked by yesterday’s low, that might spook some new buyers from the field for a while. This could drag IBE to the next potential support area between the 10.20 and 10.23 levels, which mark the lows of June 25th and 30th respectively. If there are still no new buyers in sight, the stock could slide further, and aim for the next support zone between the 10.02 and 10.06 hurdles. Those hurdles mark the lows of March 3rd and 8th respectively.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.