Looking at the technical picture of the Banco Santander SA stock (BME: SAN) on our 4-hour chart, it has exploded to the upside this morning. The share price continued to accelerate, breaking above a short-term downside resistance line taken from the high of June 16th, and overcoming one of its key resistance barriers, at 2.225, marked by the high of June 19th. At the time of writing, SAN is still balancing above that resistance area, which suggests that the buyers could be back in the game and may stay here for a while, especially if the stock closes today above that area as well. If so, a further push in the upcoming days might be possible, hence why we will take a somewhat bullish approach for now.
If the price closes above that 2.225 hurdle today, this could open the way for SAN to drift towards the high of last week, at 2.311. If that are also fails to provide resistance and breaks, this may clear the way to the 2.406 level, which is marked by the low of June 10th. Slightly above it lies another possible resistance area, at 2.424, marked by the inside swing low of June 9th.
The RSI has moved sharply to the upside today, climbing back above 50. However, the MACD still sits below zero and just fractionally below its trigger line. On one hand, the RSI is suggesting a possible increase in the speed of the price, but the MACD keeps us on a slightly cautious side, as the indicator is still too difficult to rely on. The picture on our oscillators seems to support our view of staying somewhat bullish, at least for now.
Investors might stay away from the stock for a while, if it slides below the 2.102 hurdle, marked by the low of June 15th. Such a move could push SAN further down, potentially aiming for the 2.015 obstacle, a break of which may clear the way to the 1.972 zone, which is the low of May 26th.
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