Looking at the technical picture of the Iberdrola SA (BME: IBE) stock on our 4-hour chart, we can that the price got a boost today and jumped over its short-term downside resistance line drawn from the high of July 21st. The share price is now balancing above all of its EMAs, which some buyers could see as a positive, but in order to get a bit more excited about higher areas, an additional push above the 10.735 barrier would be needed.
If the stock goes ahead and breaks above the 10.735 barrier, marked by the high of September 15th, that may attract more new investors into the game. IBE might then rise to the 10.895 obstacle, or the psychological 11.000 zone, marked near the high of August 25th. The price could temporarily stall there or correct a bit lower. That said, if the stock is able to continue trading somewhere above the 10.895 area, new buyers may step in and help lift the share price again. If this time IBE can overcome the 11.000 zone, that might clear the way towards the 11.160 level, which is the highest point of August.
The RSI and the MACD are both pointing higher. In addition to that, the RSI is above 50 and the MACD has just popped above zero, while continuing to balance above its trigger line. The indicators show increasing upside price momentum, which supports our upside scenario, for now.
Alternatively, if the stock suddenly drops back below the aforementioned downside line and also below the 10.415 hurdle, marked by yesterday’s low, that may spook potential new investors from entering any time soon. IBE could then fall to the lowest point of September, at 10.200, a break of which might set the stage for a move to the 9.902 level, marked by the low of June 25th.
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