Unicaja Banco SA (BME: UNI) is a relatively small retail bank in Spain, with a market capitalization of just EUR 727mln, when, for example, one of its top competitors BBVA SA (BME: BBVA) has a market cap of roughly around EUR 24.78bn. However, UNI is still making the list of Top 10 Spanish banks, which attracts investor attention. Around 86% of all issued stocks of this bank are owned by institutional investors and around 14% belongs to the general public. The fact that institutions own the larger portion of the bank, could make one believe that Unicaja Banco is seen as potential growth asset. That said, institutions make wrong decisions as well, so this fact is not something that a potential new investor should purely rely on.
From the technical side, after a strong drop in the second half of March, the stock entered into a consolidation mode. Recently, UNI started slowly grinding higher again, forming higher lows. However, it is now struggling to overcome the 0.5075 barrier, which is currently the highest point of July. If the share price eventually rises above that barrier, that may interest more buyers. Until then, we will remain cautiously-bullish.
As mentioned above, if the stock gets lifted above the aforementioned 0.5075 zone, that would confirm a forthcoming higher, allowing the share price to sail further north. UNI could then drift to the 0.5260 obstacle, a break of which could clear the way to the 0.5645 area, marked by the lows of June 9th and 10th. The price might stall there temporarily, as it may also test the 200 EMA on the 4-hour chart, which could provide additional resistance. That said, if the buying is still strong, a break of that area may send the stock further towards the highest point of June, at 0.6065.
Looking at the RSI, we can see that the indicator is currently pointing slightly lower but remains above 50. The MACD is just fractionally above zero and its trigger line. Both oscillators continue to show that the positive momentum is still there, which comes in-line with the above-discussed scenario.
Alternatively, if the previously-discussed upside line breaks and the share price falls below the current low of today, at 0.4840, that may spook potential new buyers from the arena. If so, UNI could end up traveling to the 0.4680 obstacle, or even the 0.4450 hurdle, marked by the lowest point of June. If the slide continues, the next possible support area might be at 0.4260, marked by the stock’s all-time low, reached in May.
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