The technical picture of the SBA Communications Corporation stock (NASDAQ: SBAC) on our daily chart shows that, in the beginning of this week, the share price fell below a medium-term upside support line taken from the low of May 13th. If the stock continues to trade below that upside line, a further downside move might follow in the near-term.
Given that yesterday SBAC found support near the 200-day EMA, we might see a slight rebound. However, if the stock struggles to get back above the aforementioned upside line, another slide could be possible. If so, the share price may fall back to the 335.86 hurdle, marked by the lowest point of November, and around there it might also test the 200-day EMA. If that whole area fails to hold, its break could clear the way to the next possible support level, at 322.75, which is the lowest point of October.
The RSI is currently flat but remains below 50. The MACD, continues to point lower, while sitting below zero and the trigger line. The two indicators show negative price momentum, suggesting that the downside scenario might still be on the table.
Alternatively, if SBAC jumps back above the aforementioned upside line and climbs above the 351.79 hurdle, marked by the high of January 7th, that may attract a few buyers into the game. The stock could end up traveling to its next potential resistance area between the 366.60 and 368.71 levels, marked by the high of January 5th and the low of January 4th. Initially, the uprise of the share price might stall there, however, if there is enough buying intertest, SBAC may end up moving to the 383.54 zone, which is the inside swing low of December 31st.
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