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by Darius Anucauskas

Peugeot SA Stock Is Still Trending Above A Medium-Term Upside Line

Despite getting hit by the pandemic and the economic measures that followed after, the stock of the French automaker Peugeot SA (EPA: UG) managed to recover some of the losses made during the slide seen in the period between mid-February and mid-March. Although the stock is currently trading around the levels of the 2008/2009 economic crisis, UG is seen more as a long-term investment, because the company tends to get back on the right track after a huge downfall, as history shows. The French manufacturer still produces the best-selling car in France, the Peugeot 208. Peugeot is also one of the leaders in Europe in selling light commercial vehicles, like the Peugeot Partner.

From the technical side, the Peugeot SA stock is still balancing above its medium-term upside support line drawn from the low of March 19th, which suggests that there might still be some upside in the works. However, from around the beginning of June, the stock is struggling to overcome the 16.25 barrier. Until we see a clear break above that barrier, we will take a cautiously bullish approach.

If, eventually, we do see a break above that 16.25 hurdle, marked by the highest point of June, this may clear the path to some higher areas, as such a move would confirm a forthcoming higher high. This way, UG could move further north, where the next possible resistance zone might be at 17.88, which is the high of March 2nd. The stock may stall there for a bit, or even correct back down. That said, if UG remains above the previously discussed 16.25 hurdle, that could keep the buying interest on the table, at least for a while more. Another uprise, and this time a break of the 17.88 obstacle, could lead the share price to its next potential resistance, at 19.06, marked by the high of February 26th.

The RSI is currently pointing a bit lower but continues to run above 50. The MACD is pointing higher, while floating above zero and its trigger line. Overall, both oscillators show that the price momentum is still to the upside, which comes in-line with the overall upside idea. But, as mentioned above, to get a bit more excited about higher areas, a break above the 16.25 barrier would be needed.

Alternatively, if the price suddenly breaks the previously mentioned upside line and falls below the 13.79 hurdle, marked by the current lowest point of September, that may spook some new buyers from entering any time soon. Such a drop would also confirm a forthcoming lower low, possibly clearing the way to the 12.75 obstacle, a break of which might set the stage for a move to the 12.16 level. That level marks the high of May 25th.

Peugeot-Daily

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Droits d'auteur 2020 JFD Group Ltd.

 

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