The technical picture of the Credit Agricole SA stock (EPA: ACA) on our daily chart shows that from around mid-May, the share price has been moving lower, while trading below a short-term tentative downside resistance line taken from the high of May 12th. As long as that downside line stays intact, we will continue aiming lower. But, in order to get a bit more confident with further declines, a drop below the lowest point of June, at 11.53, would still be needed.
If that drop below the 11.53 hurdle happens, this will confirm a forthcoming lower low, potentially clearing the way towards lower areas. ACA may fall to the 10.95 hurdle, marked by the low of February 18th, where the share price may get held temporarily. The stock could even rebound back up a bit, however, if it finds it hard to overcome the aforementioned downside line, another slide might bring ACA back to the 10.95 zone. If that zone gets violated this time, the share price may drift to the 10.38 level, marked by the high of February 8th.
The RSI is currently pointing slightly lower, while sitting below 50. The MACD is pointing a bit to the upside and sits fractionally above the trigger line, but continues to run well below zero. The two oscillators show negative price momentum, which might come in line with the idea discussed above.
Alternatively, if the share price is able to overcome the previously discussed downside line and then climbs above the 12.20 barrier, marked by the inside swing low of June 16th, that could attract more buyers into the game, potentially opening the door for further advances. ACA might rise to the 12.62 obstacle, or to the 12.94 hurdle, marked by the inside swing low of May 13th. If the buying doesn’t stop there, the stock may travel higher, possibly aiming for the 13.48 level, marked by the highest point of May.
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