The technical picture of the Mediaset España Comunicación stock (BME: TL5) on our daily chart shows that share price is currently trading between two of its trendlines, a short-term tentative downside one drawn from the high of May 28th, and a medium-term upside one taken from the low of April 20th. For now, we will wait for a violation of one of those lines before examining the next directional move.
If the aforementioned downside line surrenders and the stock jumps above it, this would also place the price above the 5.33 barrier, marked by the high of July 21st. Such a move could open the path towards the highest point of July, at 5.62, where a temporary hold-up may occur. However, if the buying interest is still strong, TL5 might overcome that obstacle and target the 5.89 level, marked by the highest point of May.
The RSI is currently pointing higher, while sitting above 50, clearly indicating positive price momentum. The MACD, despite being slightly below zero, is now also pointing higher, while running above the trigger line. The MACD is not yet indicating positive price momentum, which supports the idea discussed above of standing pat for now.
Alternatively, a break of the previously discussed medium-term upside support line and then a price-drop below the 4.85 hurdle, marked by the current lowest point of August, may spook some buyers from the arena for a while. This move could clear the way towards the 4.72 obstacle, or to the 4.53 zone, marked by the lowest point of April. If the slide continues, the next possible target might be at 4.29, which is marked near the lows of February 2nd and 3rd.
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