The Cellnex Telecom SA stock (BME: CLNX) has shown spectacular YoY performance, as it managed to double the value of its share price. Around the end of February 2019, CLNX was hovering around the 20-euro mark, but a huge buying interest came in March of 2019, which shaped the way for a further upmove in the next few months. However, after hitting its all-time high in mid-February, at 49.16, the stock reversed and set sail south. This move led to a break of its short-term upside support line taken from the low of December 19th. It looks like we may see a bit more downside in the near future, as long as the price remains below the aforementioned upside line.
Given everything what was mentioned above, in order to get comfortable with lower areas, a drop below this week’s low, at 44.73, would be needed. That’s when we will target the 44.16 hurdle, a break of which could open the door for a test of the January 28th low, at 42.72. The stock might stall around there, or even correct slightly higher. That said, if CLNX stays below the 44.73 barrier, this may lead to another drop, possibly this time bringing the share price below the 42.72 obstacle. In that case we will aim for the next potential support zone, at 42.05, which is the low of January 21st.
Our oscillators, the RSI and the MACD, are showing signs of increasing downside speed, which supports the case that there could be more downside to come in the short run. The RSI is below 50 and points lower. The MACD had just recently dropped below zero, while continuing to run below its trigger line.
Alternatively, if by any chance the share price gets a good boost and rises above the aforementioned upside line, this may attract more buyers into the game, especially if the stock also climbs above the 48.38 barrier, which is the high of February 25th. CLNX could then travel to its current all-time, at 49.16, a break of which might open the door into uncharted territory.
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