The technical picture of the Galp Energia SGPS SA stock (ELI: GALP) on our daily chart shows that the share price had jumped above the upper bound of the short-term range, which is between the 8.080 and 8.838 levels. If the stock is able to stay above the upper side of that range, a further move north might be possible. That said, this move higher could be seen as a corrective one, as overall, GALP continues to trade well bellow a medium-term tentative downside resistance line taken from the high of March 15th. If the price remains above the upper side of that range, we will stay positive in the near term.
A further push higher might bring GALP to the 9.116 obstacle, or to the 9.344 zone, marked by high of July 9th and the inside swing low of July 2nd. Near the latter resistance hurdle the stock may stall for a bit or could even be forced to drift back down slightly. However, if the share price continues to run somewhere above the upper side of the aforementioned range, new buyers might step in and drag the share price up again. If this time the stock can overcome the 9.344 zone, the next potential target may be at 9.564, marked by the highest point of July, or near the previously discussed downside line, which might provide additional resistance.
The RSI and the MACD point higher. The RSI recently jumped well above 50 and the MACD had just moved above zero, while continuing to run above the trigger line. The two oscillators show increasing positive price momentum, which is inline with the idea discussed above.
Alternatively, if GALP moves back inside the range and then falls below the 8.618 hurdle, marked by the high of September 3rd, that could keep the buyers away from entering the field for a while. The share price may drift to the 8.476 obstacle, a break of which might lead to a test of the lower side of the given range, which is between the 8.080 and 8.130 levels. Those levels mark the current lowest point of September and the lowest point of August respectively.
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