At the end of last week, the Banco Comercial Portugues SA (ELI: BCP) stock found once again resistance at 0.1992. From there, the share price slid heavily, making its way closer to a short-term tentative upside support line drawn from the low of March 7th. As long as BCP continues to trade above that trendline, we will stay bullish overall.
A further decline could bring the share price to the aforementioned upside line, which if stays intact, may invite new buyers into the game. They might take advantage of the lower price and send it north again. If so, BCP may rise to the 0.1737 obstacle, a break of which could clear the path to the 0.1893 zone. That zone marks the inside swing low of June 3rd. Slightly above it sits the previously discussed 0.1992 hurdle, which may get tested as well.
The RSI is pointing slightly to the upside but remains below 50. The MACD continues to point lower, while sitting fractionally above zero, but below the signal line. The two oscillators seem to support the idea of a small decline first.
Alternatively, if the stock breaks the previously mentioned upside line and the price drops below the 0.1550 hurdle, marked by the high of May 16th, that could temporarily scare off some buyers. BCP may then travel to the 0.1402 hurdle, marked by the lowest point of May. Initially, the share price might stall there for a bit, but if the slide continues, the next possible targets could be at 0.1301, or at 0.1193, marked by the lows of March 11th and 7th respectively.
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