From around the end of March, the stock of Mediaset España (BME: TL5) has been moving sideways, roughly between the 3.058 and 3.456 levels. As long as the share price stays inside that range, we will remain neutral. We will wait a break of one of the highlighted areas, before examining a possible short-term directional move.
If TL5 pops above its current highest point of April, at 3.456, this would confirm a forthcoming higher high and more buyers may join in. The stock may travel to the 3.803 hurdle, marked by the highs of March 10th and 11th. The share price might receive a hold-up there, or could even be forced to correct slightly lower. That said, if the stock stays above the 3.456 zone, this could attract the buyers again and help lift TL5 back up. If this time the 3.803 hurdle surrenders and breaks, this may set the stage for a move to the next possible resistance area, at 3.970, marked by the high of March 5th. That level also coincides with the 200 EMA on the 4-hour chart.
Our oscillators, the RSI and the MACD, are somewhat in support of the idea of staying neutral, at least for now. The RSI is currently pointing higher and sits fractionally above 50. The MACD, on the other hand, although slightly above zero, started pointing a bit lower and sits below its trigger line.
Alternatively, if the stock drops below the 3.058 hurdle, which is the current lowest point of April, this may temporarily spook new buyers from the arena. TL5 could then slide to the 2.900 obstacle, a break of which may clear the way to the 2.630 level, marked by the low of March 23rd.
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