Looking at the technical picture of Publicis Groupe SA (EPA: PUB) stock, we can see that last week, it managed to rebound from its medium-term upside support line taken from the low of March 17th. The rebound was quite a decent one, as it led to a break of the short-term downside resistance line drawn from the high of June 8th. Despite a small move lower, which we are noticing now, the share price still has a good chance of moving back up. As long as PUB remains above that upside line, the move lower might be seen as a temporary correction, before another leg of buying. We will stay positive, at least for now.
If the stock drifts a bit lower, but remains above the 28.21 hurdle, which is the high of July 17th, or above the aforementioned upside line, new investors might stay interested in PUB. If so, this may help raise the share price initially to the 30.10 obstacle, which is the high of July 24th. A break of that obstacle could push the stock to the high of last week, at 31.37. PUB might temporarily get held there, but if the buyers are still active, they might lift the stock a bit higher, potentially aiming for the highest point of June.
The RSI is currently pointing slightly lower, but remains above 50, which supports the notion of seeing a bit of downside, before another leg of buying. The MACD has just moved slightly above zero, while continuing to run above its trigger line. That suggests a rising upside momentum, which comes inline with the overall idea of the stock moving higher.
Alternatively, if the share price breaks the aforementioned upside line and falls below the 26.53 territory, marked by the low of last week, that may spook potential new buyers from entering any time soon. If so, PUB could start sliding to the 26.00 obstacle, or even to the 25.30 hurdle, marked by the lows of May 26th, 27 and 29th. At first, the stock could find a bit of support there, but if it is still lacking new investor attention, a further slide may bring the share price to the 23.12 level. That level marks the lowest point of May.
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