Looking at the technical picture of the Repsol YPF stock (BME: REP), we can see that after declining from mid-January till mid-March, the share price is now slowly climbing back up again. REP continues to balance above a short-term tentative upside support line taken from the low of March 23rd. Today, the stock managed to overcome yesterday’s high and this way formed a higher high, which may attract a few more buyers into the game. As long as the share price stays above that upside line, we will aim for slightly higher areas.
Given that the stock managed to overcome the 8.394 barrier, which is yesterday’s high, a few extra buyers to join in. If so, this may help REP to continue with the current direction higher, possibly aiming for the 9.018 hurdle, marked by the high of March 10th. The share price could get a hold up there initially, but if the buying-interest is still there, a further push north could bring REP to the 9.608 level, which is the low of March 6th, or even to the short-term tentative downside resistance line taken from the high of January 17th.
The RSI and the MACD seem to be somewhat in support of the above-discussed scenario. Both indicators are pointing higher. In addition to that, the RSI remains above 50 and the MACD continues to balance above the zero and trigger lines.
Alternatively, in order to examine lower areas, we would wait for a break of the aforementioned upside line and a price-drop below the 7.684 zone, marked near the high of March 26th and near the low of March 31st. This would also place the stock back below all of its EMAs on the 4-hour chart and could open the door to some lower levels. We will then examine a possible test of the 7.200 obstacle, a break of which may send REP to the 6.622 mark, which is the inside swing high of March 20th.
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