Looking at the technical picture of CaixaBank SA stock (BME: CABK), we can see that the share price is currently stuck between two of its short-term tentative lines, a downside one drawn from the high of June 8th and an upside one taken from the low of May 22nd. As long as the stock stays between those two lines we will take a neutral stance.
If, eventually, the stock breaks through the aforementioned downside line and climbs above the 1.99 hurdle, which is the high of this week, such a move may attract a few extra buyers into the game. CABK could then drift to the current highest point of June, at 2.11, where the share price might stall temporarily. If at that point CABK struggles to overcome that area straight away, it may correct a bit lower. That said, if the stock manages to continue floating above the 2-euro mark, new investors might see it as another good opportunity to step in. In this case, the share price may travel back to the 2.11 barrier, a break of which could set the stage for a move to the 2.21 level, marked by the high of May 6th.
Although the RSI is currently pointing a bit lower, it is still running near 50. The MACD, is also pointing just slightly to the downside, while continuing to sit fractionally below its trigger line and a bit above zero. Both oscillators seem to support our idea to stand pat for now, as they point to a lack of directional momentum.
Alternatively, if the previously-discussed upside line fails to provide support and breaks, that could make the buyers worry. If the stock continues to slide and drops below the 1.82 hurdle, marked by the low of June 12th, that could send CABK into a further freefall, possibly overcoming the 1.76 obstacle and aiming for the 1.66 zone, marked by the low of May 29th. If there are still no new buyers of the stock at that price, this might result in a further slide, potentially bringing the share price to the 1.61 level, which is the inside swing high of May 22nd.
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.