After bottoming in mid-March, the Peugeot SA (EPA: UG) stock reversed and started slowly moving north, forming a short-term rising channel pattern. Although this week we are seeing the share price sliding a bit, we will class that move as a corrective one. As long as the lower bound of that channel remains intact, we will stay positive overall.
A small further decline, below the 12.515 hurdle, which is the low of May 29th, could increase the stock’s chances of testing the lower side of the aforementioned pattern. But if that side provides decent support, from which the price rebounds again, more investors could see it as a good opportunity to join in. UG might then travel back to the 14.135 obstacle, or even the 15.185 hurdle, marked by the high of June 10th. If the buying doesn’t stop there, a further push north could bring the share price to the highest point of this week, at 16.245, a break of which might set the stage for re-test of the upper bound of the rising channel.
At the time of writing, the RSI is sitting below 50, despite pointing a bit higher. The MACD had just dropped below zero and continues to run under its trigger line. Both indicators seem to suggest slightly negative momentum, which comes inline with seeing a bit more correction first.
Alternatively, if the if the lower side of the channel gets violated and the price falls below the lowest point of May, at 10.705, this may halt new investors from entering soon. If so, the stock may drift to the 9.745 obstacle, a break of which could set the stage for a move to the 8.830 level, marked by the current lowest point of this year.
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.