Looking at the technical picture of the Bankinter SA stock (BME: BKT) on our 4-hour chart, we can notice that from around mid-March, the share price is moving sideways, while trading between the 5.08 and 5.52 levels. Those levels mark the current lowest point of April and the highest point of March respectively. Before entering the range, the prevailing trend was to the upside. According to the technical analysis rules, this means that there is a good chance that the share price might exit the range through the upper side of it. That said, until the stock trades inside that range, we will remain neutral.
A push through the upper side of that range, which is at 5.52, will confirm a forthcoming higher high. More buyers could join in and drag BKT towards the next potential resistance area, at 5.90, marked by the high of February 15th. If that area is not able to withstand the buying pressure and breaks, the next possible target might be at 6.08.
The RSI and the MACD are both flat, at the moment. The RSI is just fractionally below 50 and the MACD is slightly below zero and the signal line. The two indicators seem to support our neutral scenario, hence why we will not put too much emphasis on them, at least for now.
Alternatively, a break through the lower side of the aforementioned range, at 5.08, will confirm a forthcoming lower low. Such a move may temporarily spook some buyers from the arena, forcing the share price to drift further south. That’s when we will aim for the 4.91 obstacle, a break of which might open the door towards the 4.48 level, which marks the inside swing high of March 8th.
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