Looking at the technical picture of the Repsol SA stock (BME: REP) on our daily chart, we can see that from the end of October the share price has been drifting lower, while trading below a short-term tentative downside resistance line taken from the high of October 26th. That said, overall, the stock continues to trade above a medium-term tentative upside support line taken from the low of July 20th, which if stays intact, may lead to some higher areas again. However, given that the share price is stuck between the two lines, we will take a neutral stance for now and wait for a violation of one of the above-mentioned trendlines, before examining the next short-term directional move.
If the stock breaks the previously discussed upside line and then falls below the 10.01 hurdle, marked by the inside swing high of September 20th, that could clear the path to some further declines. REP might send the stock to the 9.74 zone, marked by the low of September 20th, which could provide a temporary hold-up. That said, if there are still no new buyers insight, the slide may continue and the next targe could be at 9.46, marked by the inside swing high of September 9th.
The RSI and the MACD are currently pointing lower. The RSI is below 50 and the MACD had just moved below zero and the trigger line. The two indicators show negative price momentum, which supports the above-mentioned scenario.
A break of the aforementioned downside line and then a push above the 10.82 hurdle, marked near the low of November 17th and the high of today, could open the door for higher areas, as more buyers might join in. REP may then drift to the 11.21 obstacle, or even the 11.39 hurdle, which is marked by the inside swing low of October 18th. If the buying doesn’t stop there, the next possible target could be at 11.78, marked by the highest point of October.
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