After hitting a 13-year high in February near the 11.35 level, the Iberdrola SA stock (BME: IBE) sold off sharply. Given the current negative market sentiment, the price might stay under a bit of pressure. However, from the technical side, we can see that IBE remains above its long-term upside support line taken from the lowest point of October 2018. As long as the price stays above that upside line, we will stay cautiously-bullish.
A drop below the 9.78 hurdle might send IBE further south, potentially targeting the 9.35 zone, which is the highest point of December 2019. Slightly lower sits the previously-discussed upside line, which may provide additional support. If so, the stock could pick up some buying interest again and travel to the 9.78 territory. If that area fails to withstand the bullish pressure and breaks, this could open the door for a move to the 10.14 barrier, or the 10.46 level, marked by the low of March 6th.
Our oscillators, the RSI and the MACD, show a rise in downside momentum. The RSI is now below 50 and points lower. The MACD is below its trigger line and also points lower but remains above zero.
We may consider deeper extensions to the downside if the price breaks the upside support line and falls below the 9.03 zone, which is the high of January 13th. This way, the door could be opened to some lower areas, like 8.81 and 8.57, which are the lowest points of January 2020 and December 2019 respectively.
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