Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Darius Anucauskas

Waiting For Bouygues Stock To Make A Move

The stock of the French industrial and telecommunications company Bouygues SA (EPA: EN), has been slowly recovering after a sharp decline it experienced in the period between end of February and the beginning of March. Although the share price managed to recover a decent amount of losses, still, EN has some space to fill until it could break even for the year. The stock’s opening price was at 38.00. From the technical side, the share price continues to balance above a medium-term upside support line drawn from the low of May 14th, which could mean that there is still some potential for the upside in the near term. That said, from the beginning of July, it is struggling to overcome its key resistance area between the 33.37 and 33.56 levels. In order aim for higher targets, a break of that area is needed, hence why we will take a cautiously bullish approach for now.

If EN gets some more attention from new buyers and rises above the 33.56 barrier, that would confirm a forthcoming higher high, which could clear the way for a further uprise. The stock might then drift to the 34.30 hurdle, a break of which may lead to a test of the 35.72 zone, which is the high of March 6th. The share price might get a hold-up around there, or even correct slightly back down. However, if EN remains above the aforementioned upside line, more buyers could take advantage of the lower price and step in. Another push higher could this time break the 35.72 obstacle and aim for the 37.15 level, marked by the high of March 4th.

The RSI and the MACD seem to be in support of the idea of waiting for a break above the 33.56 barrier first, before aiming further north. That is because the RSI, although above 50, is currently pointing a bit lower. The MACD is also pointing a bit lower and sits fractionally below its trigger line, but remains above zero.

On the downside, if the previously-discussed upside line breaks and the share price falls below the 31.51 hurdle, marked by the low of August 7th, that may spook new buyers from the field temporarily. The stock might then drop to the current lowest point of this month, at 29.89, a break of which might set the stage for a slide to the 29.00 level. That level marks the high of June 25th and the low of June 29th.



The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.