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by Darius Anucauskas

Will The Acciona SA Stock Go For A Lower Low?

From March 20th, the Acciona SA stock (BME: ANA) has been on a gradual decline, while trading below a downside resistance line taken from the high of that day. Recently, the slide has been halted near the 84-eur mark. Although, for now, we are leaning towards slightly lower areas, we would prefer to wait for a clear break below that 84.00 level first, hence why we will remain somewhat bearish.

If, eventually, we get a drop below the 84.00 hurdle, which is marked near the lows of May 7th and 11th, this will confirm a forthcoming lower low and may clear the path to some lower areas. If ANA continues to fall, this may bring the stock closer to the 80.10 hurdle, which if fails to provide decent support and breaks, could send the share price all the way towards the lowest point of this year, at 76.40.

The RSI is still below 50 and points a bit lower. The MACD, although fractionally above its trigger line, continues to move below zero, while running a bit on the flat side. Both indicators seem to be supporting the idea of seeing some more downside in the near term.

Alternatively, if the aforementioned downside line gets violated and the price climbs above the 87.70 barrier, marked by the current high of this week, this may attract a few new investors to join in. We will then target the 91.65 hurdle, which is the high of April 29th and 30th. The stock may get a hold-up around there, but if the buyers are still feeling comfortable and are able to lift ANA beyond the 91.65 obstacle, this may set the stage for a move to the 94-eur mark, which is the high of April 17th. That level also coincides with the 200 EMA on the 4-hour chart.

Acciona-240

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