Short-Term View On CaixaBank Stock

by Darius Anucauskas
13:37, 2020/01/27

Looking at the technical picture on the 4-hour chart, we can see that after hitting the 2.92 barrier in the beginning of January, the CaixaBank stock (BME: CABK) turned south and is now trading well below its short-term tentative upside line. In addition to that, the price has moved below the 200 EMA and currently sits below a short-term tentative downside resistance line taken from the highest point of January. As long as CABK trades below the above-discussed line, we will remain bearish, at least in the short run.

In order to get comfortable with lower areas, we would like to see a drop below the 2.61 hurdle, which is the current low for today. This way, the stock would confirm another lower low, which could open the door for a further slide to the 2.55 zone, marked by the lowest point of November. CABK might stall around there, but if there are no takers of the stock at that price, this may lead to another drop, possibly bringing the share price to the 2.46 level. That level is marked by the low of October 30^th.

Our oscillators, the RSI and the MACD, are somewhat in support of the above-mentioned scenario. The RSI is still floating below 50, pointing slightly lower. The MACD is also pointing lower, while running below zero and its trigger line.

Alternatively, if the stock breaks the aforementioned downside line and rises above the 2.71 barrier, marked by the high of January 24^th, this could attract a few new buyers, who could help CABK move higher. That’s when we will aim for the 2.76 obstacle, a break of which might push the share price to the 2.81 hurdle, which is the high of January 20^th. Initially, the stock may get a hold-up around there, or even correct back down a bit. That said, if the buying interest is still in the air, the correction might quickly get picked up by the buyers again and the share price could travel to the 2.88 level, marked by the high of January 10^th.

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