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.
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