Can The Galp Energia SGPS SA Stock Go Back To The Highest Point Of March?

by Darius Anucauskas
12:21, 2021/05/26

The technical picture of the Portuguese Galp Energia SGPS SA stock (ELI: GALP) on our 4-hour chart shows that, after reversing higher at the end of April, the share price continues to climb higher, while trading above a short-term tentative upside support line taken from the low of April 23^rd. Although there is a good chance for the stock to drift further north, we would first need to see a break above the10.38 barrier, which kept the price lower from mid-March. For now, we will take a somewhat-positive approach.

If, eventually, the stock is able to jump above the 10.38 barrier, marked by the highs of March 17^th, May 10^th and 17^th, this will confirm a forthcoming higher high, potentially opening the door for further moves north. GALP may drift to the high of March 16^th, at 10.65, which might halt the acceleration temporarily, or could even force the stock to retrace a bit lower. That said, if the share price remains somewhere above the aforementioned upside line, new buyers may join in. Another push higher might once again test the 10.65 obstacle, a break of which could set the stage for a move to the 10.85 level, marked by the highest point of March.

The RSI and the MACD are currently pointing higher. In addition to that, the RSI is still sitting above 50 and the MACD had just jumped above zero, while continuing to run above its trigger line. The two oscillators show rising price momentum, meaning that the share price has a good chance of rising, at least in the near term.

Alternatively, if GALP breaks the aforementioned upside line and falls below the 9.94 hurdle, marked by the current low of today, that might spook new buyers from the field for a bit. The stock may drop to the low of last week, at 9.77, a break of which could clear the way towards the 9.50 level, marked by the current lowest point of May.

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