Técnicas Reunidas SA (BME: TRE) is a major Spanish contractor, which has presence in the oil and gas industry, as the company provides procurement, engineering and construction of industrial/power generation plants. Recently, TRE signed a Memorandum of Understanding with Saudi Arabia’s Alkam Energy company to provide engineering, design and construction services.
The technical picture of the Técnicas Reunidas stock continues to support the bullish case, at least for now, as the share price is still balancing above a short-term upside line, drawn from the low of November 6th, and above all of its EMAs on our 4-hour chart. That said, in order to get a bit more excited with higher areas, we would prefer to wait for a move above the 10.96 barrier first, which is marked by the current highest point of December. Until then, we will remain cautiously bullish.
If, eventually, the stock manages to climb above the 10.96 hurdle, this may open the way to some higher levels, as more buyers might see it as a good opportunity to step in. TRE could rise to the highest point of November, at 10.96, where it may get halted temporarily. That said, if the if the buying doesn’t end there, a further push north might set the stage for a test of the 12.03 level, marked near the lows of July 10th and 14th.
The RSI is still pointing slightly to the upside, while sitting above 50. This indicator supports the idea of aiming for slightly higher areas, as it shows increasing upside speed of the price. However, the MACD continues to decline, while running below its trigger line, but still remains fractionally above zero. Although this oscillator has been moving a bit lower from the end of November, it continues to stay in the positive territory, which might support the idea of waiting for a breakout above the 10.96 zone, mentioned above.
Alternatively, if the previously discussed upside line fails to hold, breaks and the price falls below the 9.77 hurdle, marked by last week’s low, this might clear the way for further declines. TRE could then drift to the 9.77 obstacle, or even to the 9.36 zone, which marks the high of November 20th. If there are still no new buyers in sight at that price, this may result in a further slide, potentially sending the stock to the 8.72 area, or even to the 8.35 level, marked by the high of November 11th.
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 2020 JFD Group Ltd.