Looking at our daily chart of the Banco Bilbao Vizcaya Argentaria SA stock (BME: BBVA), we can see that it continues to pick up investor interest, after the price found support near the 4.19-eur mark back in the end of August. In the beginning of this month, BBVA managed to break above its long-term tentative downside resistance line drawn from the high of May 14th, 2018. At the same time, the stock continues to balance above its short-term upwards-moving trendline taken from the low of August 20th. Also, another positive technical aspect is that the price is currently sitting above the 200-day EMA. That said, BBVA is still struggling to move above the 5.04 barrier, which is marked by the highs of July 25th and November 6th. In order to get comfortable with slightly higher areas, a daily close above that barrier would be needed, hence why we will take a cautiously-bullish approach, at least for now.
If BBVA makes a daily close above that 5.04 hurdle, this might attract more buyers into the game, as such a move would confirm a higher high. This could push the price to the 5.21 obstacle, a break of which might set the stage for a test of the 5.47 level. That level marks the high of May 2nd.
Our oscillators, the RSI and the MACD, are showing a positive price momentum. The RSI is above 50 and is pointing to the upside. The MACD is also pointing slightly higher, while sitting above zero and its trigger line. Both indicators currently support the idea of a possible further move up.
Alternatively, if the price suddenly falls all the way below the previously-mentioned short-term upside support line and drops below the 4.60 hurdle, which is the low of October 31st, this might spook potential new buyers from jumping into the stock. Such a fall might increase BBVA’s chances of drifting further south, where we will initially aim for the 4.46 zone, a break of which could open the door for another slide to the 4.19 level. That level is the current lowest point of this year.
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