Is Credit Agricole SA Stock Flagging Out? | Technical Analysis
Looking at the technical picture of the Credit Agricole SA stock (EPA: ACA), after forming a double bottom pattern in the end of September and the beginning of October, the price had popped above the so-called “neckline” of the formation, which is at 7.59. Such movement indicates that there could be more upside to come, despite today’s little correction lower. If the share price rises above the current high of this week, at 7.87, that may attract more new buyers into the game. Another view is that the stock is currently forming a possible bullish flag, which might also support the upside scenario. We will take a positive approach, at least for now.
A strong push above the previously-mentioned 7.87 barrier would confirm a forthcoming higher high and may open the way towards the 8.07 hurdle, which is the low of September 18th. Initially, ACA could get halted around that area, but if the buyers are still active, a break of that hurdle might set the stage for a push to the 8.26 obstacle, or even the 8.37 level, where the latter one is marked by the low of September 3rd and by an intraday swing high of September 17th.
Although the RSI and the MACD are currently on the flat side, still, the RSI remains slightly above 50 and the MACD continues to run above zero and its trigger line. This suggests that the price momentum remains on the positive side, what supports the upside scenario.
Alternatively, if the price suddenly drops back below the 7.59 zone, which is the high of September 29th, that may clear the path to some lower areas, as such a move might keep new buyers from entering any time soon. ACA could then slide to the 7.45 territory, or even to the 7.28 zone, marked by the inside swing high of October 2nd and the low of October 5th. The fall may get halted around there, which could even lead to a small correction back up. However, if the stock is not able to travel back above the 7.59 area, this may result in another drop, potentially leading the share price below the 7.28 zone and aiming for the current lowest point of October, at 7.13.
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