Looking at the technical picture of the Schneider Electric SA stock (EPA: SU) on the 4-hour chart, the price is desperately trying to make its way higher again. The stock has climbed back above the 200 EMA, which might be seen as a positive sign, however SU still remains below its key resistance barrier, at 86.00, which is also the current highest point of April. In order to examine higher areas, the stock has to overcome that barrier first, hence why we will stay cautiously-bullish, for now.
Eventually, if the share price does rise above the aforementioned hurdle, at 86.00, more buyers could see this as a good opportunity to join in. SU might drift towards the 89.36 hurdle, marked by the low of March 6th, but if it fails to withstand the bullish activity and breaks, the stock could travel further north. That’s when we will aim for the 93.76 level, which is the high of March 6th.
The RSI and the MACD on our 4-hour chart are somewhat in support of the above-mentioned scenario. The RSI is currently pointing slightly to the upside and continues to balance above 50. The MACD, although fractionally below its trigger line, remains above zero.
Alternatively, if the share price breaks a short-term tentative upside support line taken from the lowest point of April and slides below the low of last week, at 80.10, this could clear the path for further declines. SU might drift to the 78.32 obstacle, a break of which may send the stock to the 75.46 support zone, which is the high of April 2nd. Initially, the share price could get held around there, but if there are still no new buyers in sight, this might lead to a further decline, potentially bringing the stock to the lowest point of April, at 71.36.
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