Waiting For The Bankinter Stock To Exit The Range

by Darius Anucauskas
12:08, 2022/04/12

Looking at the technical picture of the Bankinter SA stock (BME: BKT) on our 4-hour chart, we can notice that from around mid-March, the share price is moving sideways, while trading between the 5.08 and 5.52 levels. Those levels mark the current lowest point of April and the highest point of March respectively. Before entering the range, the prevailing trend was to the upside. According to the technical analysis rules, this means that there is a good chance that the share price might exit the range through the upper side of it. That said, until the stock trades inside that range, we will remain neutral.

A push through the upper side of that range, which is at 5.52, will confirm a forthcoming higher high. More buyers could join in and drag BKT towards the next potential resistance area, at 5.90, marked by the high of February 15^th. If that area is not able to withstand the buying pressure and breaks, the next possible target might be at 6.08.

The RSI and the MACD are both flat, at the moment. The RSI is just fractionally below 50 and the MACD is slightly below zero and the signal line. The two indicators seem to support our neutral scenario, hence why we will not put too much emphasis on them, at least for now.

Alternatively, a break through the lower side of the aforementioned range, at 5.08, will confirm a forthcoming lower low. Such a move may temporarily spook some buyers from the arena, forcing the share price to drift further south. That’s when we will aim for the 4.91 obstacle, a break of which might open the door towards the 4.48 level, which marks the inside swing high of March 8^th.

Disclaimer:

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.