Looking at the overall technical picture of the ACS Actividades de Construcción y Servicios SA Stock (BME: ACS), we can see that it is stuck between two lines: a medium-term downside resistance line, taken from the high of April 30th 2019, and a long-term upside support line, drawn from the low of October 23rd 2018. Some might even see a possible squeeze building up. Eventually, if one of the lines gets broken, only then that we will consider a further directional move. Until then, we will take a neutral approach and wait for the right time.
If the price continues to balance below the aforementioned medium-term downside line, this could maintain the bearish atmosphere, especially if the price slides below the previously-mentioned upside line and below the 33.13 level, marked by the low of last week. This way, existing investors might liquidate some of their positions, which may bring ACS down to the 32.27 hurdle, or the 31.72 mark, which is the low of December 27th, 2018. If there is still no interest in the stock at that mark, this could lead to a further decline, possibly aiming for the 31.29 level, marked by the low of October 23rd, 2018.
Alternatively, if the share price gets pushed, not only above the aforementioned downside line, but also above the high of last week, at 35.46, this may attract more-buying interest going further. We will then aim for the 36.00 hurdle, a break of which might clear the way to the 37.35 level, marked by the high of November 5th, 2019.
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