Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
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.

SocieteGenerale-Daily

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT