After hitting an all-time high near the 105.45 level on February 20th, the Schneider Electric stock (EPA: SU) reversed sharply to the downside, falling below its long-term upside trendline drawn from the low of January 16th, 2019. This week, the price did have a few attempts to climb back above that upside line, but still ended its trading sessions below it. Unless SU moves above that line, we will remain sceptical about any advances in the near term.
If the stock drops below the current low of this week, at 80.26, this will confirm a forthcoming lower low and could open the door for a move further down. That’s when we will target the 77.48 obstacle, a break of which may send the price to the 74.46 zone, marked by the lowest point of October 2019. SU might stall around there for a bit, or even rebound slightly. However, if the stock struggles to get back above the 80.26 territory, then this may result in another slide, possibly overcoming the 74.46 hurdle and hitting the 70.76 level, which is the lowest point of August 2019.
Looking at our oscillators, the RSI and the MACD, both are somewhat in support of the above-discussed idea. Although the RSI is pointing slightly higher, it remains in the below-50 territory and not far from the 20 mark. The MACD is clearly pointing lower, while sitting below zero and its trigger line.
On the other hand, if the share price moves back above the aforementioned upside line and also pushes above the 85.86 barrier, marked by the current high of this week, this could attract a few more buyers into the game. Such a move could help SU to move not only to the 89.36 hurdle, but also to the 93.80 zone, which is the high of March 6th. Initially, the area might stall the stock temporarily, but if the buying doesn’t stop there, the next resistance level to consider might be near the 98.00 mark, which is the current highest point of March.
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