Looking at the technical picture of the Bankinter stock (BME: BKT), we can see that after failing to close a daily candle above its 200-day EMA, the price started moving sharply to the downside, forming a couple of runaway downside gaps last week. BKT is now trading below a short-term tentative downside resistance line taken from the high of January 7th. However, in order to be comfortable with further possible declines, we would like to see a daily close below the current February low, at 5.81, hence our cautiously-bearish approach for now.
If, eventually, we do see a daily close below the 5.81 hurdle, this would confirm a forthcoming lower low and might force a few existing investors to liquidate some of their positions. Such actions might lead the price to the 5.64 obstacle, a break of which may clear the path to the 5.45 level, marked by the lowest point of October 2019.
Looking from our oscillators, the RSI and the MACD, both are currently pointing lower. The RSI is also below 50 and the MACD is below both lines, the zero and the trigger one. Such a picture suggests there could be more downside to come in the near term.
Alternatively, if the price gets a boost and travels above the aforementioned downside line, that could attract some more buying interest, especially if BKT moves above the 6.34 barrier, marked by the high of February 18th. At the same time, the stock would be back above its 200-day EMA, which could also add a positive spin on the near-term outlook. This is when we will aim for the resistance zone between the 6.46 and 6.49 levels, which if fails to withstand the buyer pressure and breaks, could open the door for another push to the 6.74 level, marked by the highest point of January.
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