After hitting its historic low in March, at 6.63. the Merlin Properties SA stock (BME: MRL) initially moved a bit higher, but this week it came close to that all-time low again. However, the share price did not test the 6.63 hurdle and instead it started pointing higher, this way confirming a range, roughly between the 6.63 and 8.46 levels. Overall, it seems that MRL might stay within that range for a while, but from the short-term perspective, we could see a bit of upside within that range.
A push back above the 7.30 barrier, marked by the high of this week, may attract a few new buyers into the game, where the next potential target could be at 7.81. That area marks the high of May 11th and there could be a chance for MRL to stall there for a bit. That said, if the buying doesn’t stop there, a further push north could bring the stock to the upper bound of the aforementioned range, which is at the 8.46 zone.
Looking at the RSI and the MACD on our 4-hour chart, at the time of writing, both indicators are pointing slightly to the upside. Although the RSI is below 50 and the MACD is below zero, both oscillators seem to be showing willingness to move up a bit. In addition to that, the MACD is fractionally above its trigger line. This supports our current outlook of seeing some upside in the near term and confirms our view of staying neutral overall.
If, by any chance, the stock falls through the lower side of that range, at 6.63, this would confirm a forthcoming lower low and deeper extensions to the downside might be possible. Because MRL would be placed into an uncharted territory, we can only assume that certain key levels like 6.00 and 5.00, could become potential targets.
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