The technical picture of the Repsol YPF stock (BME: REP) on our daily chart shows that the share price continues to balance above all of its EMAs and the medium-term upside support line taken from the low of October 29th. However, although the stock keeps forming higher lows, it is currently struggling to overcome the 11.15 barrier, which kept REP from moving higher since the beginning of March. In order to get comfortable with further advances, we need to wait for a break above that barrier first. Hence our somewhat positive approach for now.
If, eventually, the share price overcomes the 11.15 hurdle, this will confirm a forthcoming higher high and could open the door for a further uprise. REP might drift to its next resistance area between the 11.71 and 11.90 levels, marked by the high of February 24th and the low of February 21st respectively. The stock could receive a hold-up around there, possibly even resulting in a slight correction lower. However, if the share price continues to trade somewhere above the 11.15 zone, new buyers may step in and take the stock higher. If this time they are able to drive REP above the 11.90 obstacle, the next possible target could be at 12.97, marked by the highest point of February.
Although the RSI is currently pointing lower, it remains above 50. The MACD continues to run above zero and its trigger line, while staying a bit on the flat side. Overall, the two oscillators indicate positive price momentum, which supports the above discussed scenario.
Alternatively, if the aforementioned upside line gets broken and the share price falls below the 9.85 hurdle, marked by the lowest point of April, this will confirm a forthcoming lower low, potentially opening the door towards lower areas. REP may then travel to the psychological 9.00 zone, which acted as a good resistance between the end of November 2020 and the beginning of February 2021. However, if that zone fails to provide strong support and breaks, the next potential target might be the 7.95 level, which is the lowest point of February.
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