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by Darius Anucauskas

Is Société Générale Stock Ready For A Higher High?

After its reversal to the upside around mid-August 2019, the Société Générale stock (EPA: GLE) started grinding higher, while balancing above a medium-term tentative upside support line taken from the lowest point of October. In January, the stock hit a strong resistance near the 32.20 barrier, from which it corrected a bit lower. However, the price structure remains of higher lows and if GLE breaks above that barrier, this would also confirm a higher high. That said, until we see that break, we will stay somewhat positive.

As mentioned above, a push above the 32.20 zone could attract more buying-interest, as it would confirm a forthcoming higher high. That’s when we will aim for the 34.55 area, marked by the highest point of November 2018. The stock might get a hold-up around there, or even correct slightly lower. That said, as long as it continues to float above the previously-discussed upside line, we will stay positive. Another uprise may send the price back to the 34.55 hurdle, a break of which could clear the path to the 35.64 level, marked by the high of October 16th, 2018.

The RSI and the MACD on our daily chart are pointing slightly to the upside still. In addition to that, the RSI remains above 50 and the MACD is above both of its zero and trigger lines. For now, these indicators support our view of a possible move higher.

Alternatively, if the aforementioned upside line gets broken and the price falls below the 29.10 hurdle, which is the lowest point of January, this may force a few existing investors to liquidate some of their positions. That’s when the stock may drift to the 27.75 zone, or even to the 27.06 area, marked by the high of November 5th, 2019. If there is still a lack of interest among new buyers near those levels, that could lead to another decline, potentially targeting the 25.10 level, which is the low of October 31st.



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