Safran Stock Breaks The Short-Term Downside Resistance Line

by Darius Anucauskas
12:09, 2021/09/21

The technical picture of the Safran SA stock (EPA: SAF) on our daily chart shows that, yesterday, the share price popped and stayed above a short-term downside resistance line taken from the high of June 22^nd. But today, the stock received a hold-up near the 108.60 barrier, marked near the highs of September 1^st and 2^nd. There is an indication that a further move north could be possible, however we would prefer to see a daily close above that 108.60 barrier first, in order to get comfortable with higher areas.

If SAF makes its way higher and stays above the 108.60, this will confirm a forthcoming higher high, potentially inviting more buyers into the game. The share price could then travel to the 113.42 hurdle, marked by the high of August 6^th, where the stock may receive a temporary hold-up. That said, if the buyers continue to apply pressure, SAF might overcome that hurdle and aim for the 118.46 level, which is marked near the highs of July 23^rd and 28^th.

The RSI had recently jumped above 50 and continues to point higher, indicating positive price momentum, which supports the above-discussed scenario. The MACD is pointing higher as well, but remains slightly below zero, while sitting above its trigger line. The MACD supports the idea to stand pat for now and wait for a push at least above 108.60 barrier, before aiming further north.

Alternatively, to consider lower areas, a price-drop below the 101.72 hurdle, marked by the current lowest point of September, would be needed. Such a move would confirm a forthcoming lower low, possibly setting the stage for a move to the next support area between the 97.28 and 98.10 levels. Those levels mark the high of November 3^rd and the low of November 6^th respectively. If there are still no new buyers near that support area, SAF may continue sliding, possibly then targeting the 92.88 zone, marked by the low of November 3^rd.

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