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by Darius Anucauskas

Can Vinci SA Stock Break The Downside Line?

Looking at the technical picture of Vinci SA stock (EPA: DG) on the daily chart, we can see that recently the share price came close to testing its short-term tentative downside resistance line drawn from the high of February 21st. However, DG got held slightly below the 21-day EMA, just near the 20-day SMA of the Bollinger Bands. As long as the price remains below that downside line, a move lower might be the main scenario.

If DG suddenly slides back below the 69.24 hurdle, which is near the highs of March 23rd and 24th, this may clear the path to some lower areas. We will then examine the possibility of seeing a move to the 61.40 obstacle, a break of which could set the stage for a re-visit of the 54.70 level, marked by the lowest point of March.

Our oscillators, the RSI and the MACD, have recently moved higher after reaching their lows around mid-March. The RSI is currently flat and remains below 50. The MACD, although it is pointing slightly higher and sits above its trigger line, is still below zero. All this supports the idea of staying slightly bearish, at least for now.

Alternatively, if the aforementioned downside line breaks and the price climbs above the 78.74 barrier, marked by the high of March 11th, this may attract more buyers into the game. The stock could drift further north towards the 84.14 obstacle, or even the 87.68 zone, which is the low of March 6th. This is where DG might get held initially, or even correct a bit lower. However, if the buying remains strong, the next potential resistance area to consider could be the 91.86 level, marked by the high of March 6th.

Vinci daily


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