After trading lower through most of 2017 and through all of 2018, Societe Generale stock (EPA: GLE) is finally showing signs of hope for investors. This is because, after finding strong support at the 23.60-euro price tag, marked near the low of November 4th, 2012, the share price continued to accelerate. Such a move led to a break of the medium-term downside resistance line drawn from the high of May 2018. Thus, for now, we will remain positive, at least in the short run, and aim for slightly higher levels.
After breaking and closing its daily candle above the aforementioned downside line and also a key resistance at 28.30, the Societe Generale’s stock is now trying to clear the path for itself towards the next potential resistance zone, at 30.40. That zone held the price from traveling higher on January 16th and that’s why we will carefully monitor that area. That said, if investor interest does not ease off there, a break above 30.40 could attract even more buyers and we may see the stock climbing towards the 32.10 barrier, marked by the inside swing low of November 20th and 22nd.
Our oscillators, the RSI and the MACD, are in support of the above-discussed game plan. The RSI is well above 50 and continues to point higher. The MACD is also quite promising, as it is running in the positive territory and above the trigger line. In addition to that, the MACD continues to point higher as well.
If the price reverses and makes its way back below the downside resistance line, this could turn the short-term outlook to neutral. In order to target the downside again, we would need to see a break below a short-term upside support line, taken from the low of February 15th, and also a price-drop below the 26.10 hurdle, which is the low of April 11th. This way, the path to the 25.20 area could be opened. That area acted as good support for the stock on March 8th and 26th. If it fails to withhold GLE this time, a break lower might drag the price to its February’s lows near the 23.60 level for a quick test.
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