Overall, Bankia Stock Remains Within A Range

by Darius Anucauskas
12:26, 2020/04/30

The technical picture of Bankia (BME: BKIA) is showing us that the stock continues to trade within a range, between the 0.870 and 1.068 price levels, which is dragging on from around the end of March. Looking at our 1-hour chart, we can see that, after climbing above the 200 EMA yesterday, the share price continues to balance above it today as well. Such activity suggests that the short-term outlook might remain somewhat positive, however let’s not forget that the overall outlook will stay neutral, as long as the stock moves inside that range.

A push above the yesterday’s high, at 0.995, may attract more buyers into the game and allow BKIA to drift higher. That’s when the share price could test the current highest point of April, at 1.044, which may slow down the acceleration slightly. That said, if the buyers are still feeling slightly more confident, another push north could bring the share price to the 1.068 level, which is the high of March 26^th and also the upper bound of the aforementioned range.

Although the RSI is currently flat, it still remains above 50. The MACD is pointing slightly higher, while balancing above its zero and trigger lines. Both indicators support the idea, that there may be a bit more upside in the near-term.

Alternatively, if the share price falls back below the 200 EMA on the 1-hour chart and also slides below the 0.950 hurdle, which is the high of April 23^rd, this could open the door to some deeper extensions to the downside within the given range. The stock could then drift to the 0.910 obstacle, a break of which may send BKIA to the lower bound of that range, at 0.870.

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