Carrefour Stock Could Still Be Under Buying Interest

by Darius Anucauskas
11:38, 2021/04/06

Looking at the technical picture of the Carrefour SA stock (EPA: CA) on our daily chart, we can see that the price structure is of higher lows and higher highs as of the beginning of March. The share price had recently found some strong resistance near the 15.51 barrier, marked by the highs of March 25^th and 30^th. The stock is also trading above a short-term upside support line taken from the low of March 5^th. As long as the share price remains above that upside line, we will continue aiming higher.

Given that CA had slightly distanced itself from the aforementioned upside line, we might see a small correction lower towards that line first and if it holds once again, another push north could be possible, as new buyers may join in. If so, the stock might drift to the above-mentioned 15.51 barrier, a break of which could set the stage for a push to the 15.75 zone, which marks the high of January 18^th. If the buying doesn’t end there, the next possible target could be at 16.13, marked by the low of January 15^th.

The RSI and the MACD have topped in the end of March and are now on a slight decline. That said, although the RSI is currently flat, it still remains above 50. The MACD, despite pointing a bit lower and sitting below its trigger line, remains above zero. The two oscillators seem to support the idea of seeing a small correction before another possible upmove.

Alternatively, if the share price suddenly violates the previously discussed upside line and then slides below the 14.50 hurdle, marked by the low of March 23^rd, that might open the way for lower levels. CA may fall to the lowest point of March, at 14.13, a break of which could send the share price to the 13.91 level, marked by the lowest point of February.

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