Looking at the technical picture of the Viscofan stock (BME: VIS), we can see that, after reversing higher at the end of February, the share price is now slowly grinding higher, while trading above a short-term upside support line taken from the low of February 23rd. Today, the stock continues to push higher, while floating above all of its EMAs on our 4-hour chart. At the time of writing, it is once again making its way above the high of February 26th, at 59.10. If VIS is able to close above that hurdle, that may increase the stock’s chances of drifting further north, as more buyers might join in.
If, eventually, the stock closes above that 59.10 zone, this may open the door for a move to the 59.70 area, marked near the highs of February 2nd and 16th, where the share price could get halted for a bit. VIS might even retrace back down a bit. However, if it remains above the aforementioned upside line and above all the EMAs on our 4-hour chart, we will stay positive with the near-term outlook. Another move higher and this time a break above the 59.70 obstacle would confirm a forthcoming higher high and set the stage for a test of the 60.75 level, marked by the highest point of January.
The RSI and the MACD are both pointing higher. In addition to that, the RSI continues to run above 50 and the MACD remains above zero and its trigger line. The oscillators are showing increasing upside speed, which is inline with the idea discussed above.
Alternatively, if the share price breaks the previously-discussed upside line and then falls below the 57.85 hurdle, marked by the low of March 12th, that may spook new buyers from entering for a while. The stock may then drift to the 57.30 obstacle, or to the 56.95 zone, marked by the low of March 4th. If there are still no new buyers in sight even at that price, VIS could continue with its journey south, possibly targeting the 55.85 level. That level marks the current lowest point of March.
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