After reversing to the upside on February 3rd, the Acerinox SA stock (BME: ACX) started climbing back up, trying to recover losses made in January. The share price got held near the 9.67 barrier, from where it drifted a bit lower. The stock found support near the 9.30 hurdle and pushed north again. We may now draw a short-term tentative upside support line from the low of February 3rd. Although the price continues to balance above that line, in order to get comfortable with higher areas, we would like to see a push above the 9.67 barrier first, before examining larger extensions to the upside.
If the price rises above the 9.67 zone, this will confirm a forthcoming higher high and the stock may end up drifting to the high of January 20th, at 9.97. ACX could get an initial hold-up there, or it might even correct back down slightly. That said, if the share price stays above the aforementioned upside line, we will stay positive, at least over the near-term outlook. If another uprise pushes the stock above the 9.97 area, this might invite more buyers into the field and clear the path to the 10.14 level, marked by the highest point of January.
Our oscillators, the RSI and the MACD, are somewhat in support of the upside. The RSI is above 50 and points slightly higher. The MACD had just pushed back fractionally above the trigger line and started pointing slightly higher, while still running above zero.
On the other hand, some investors might find it worrying if the price breaks the previously-mentioned upside line and falls below the 9.30 hurdle, which is marked by the lows of February 7th, 10th and 11th. That’s when ACX could slide to the 9.11 obstacle, a break of which may clear the path to the 8.90 level, marked by the inside swing high of February 3rd.
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