From the beginning of April, the technical picture of the Ferrovial SA stock (BME: FER) is showing that the share price keeps narrowing its trading range. Basically, the stock is stuck between two short-term lines, a downside one taken from the high of April 14th and an upside one taken from the low of April 3rd. As long as FER continues to balance between those two lines, we will take a neutral stance and wait until one of them is broken, in order to examine the next directional move.
If the stock suddenly attracts a few new buyers, that may help it break through the aforementioned downside line. I addition to that, a break above the 23.82 barrier, marked by the current highest point of May, could invite even more new investors in the playing field. If so, FER might travel to the 25.48 zone, marked by the high of March 9th, where it may get halted temporarily. However, if there is still a bit of buying interest left, a further push north could bring the share price closer to the 26.12 level, marked by the low of March 6th.
Our oscillators, the RSI and the MACD, are currently on the flat side on our 4-hour chart. Although the RSI is currently pointing slightly upwards, it continues to hang around the 50 zone. The MACD is also somewhat on the flat side, as it coincides with its zero and trigger lines. Both indicators support the idea to stand pat, at least for now.
Some new investors could get spooked if the stock suddenly breaks the previously-discussed upside line and falls below the 22.21 hurdle, which is the current low of this week. If such a move occurs, FER might drift towards the lowest point of May, at 21.52, a break of which could clear the path to the 20.28 level, marked by the lowest point of April.
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