Finance

Gestamp Automoción hits the very long-term downtrend line

Gestamp Automoción hits the very long-term downtrend line

The price of Gestamp started a recovery in MAR 2022, finding support at the long-term uptrend line in fuchsia color, leaving an important support area around 2,748 / 2,808 euros per share.

After bouncing off the long-term fuchsia uptrend line, the market reached the very long-term black downtrend line, drawn from all-time highs of €7,116, in JUN 2018. (See weekly chart)

The market has validated a bearish HCH figure indicated in a circle in said resistance area, this allows us to project a minimum theoretical objective towards levels of 2,948 euros per share.

At the close of Tuesday, SEP 13, with the IPC data, we had a bearish engulfing pattern and yesterday we validated it by violating its low, therefore, we have a first resistance at the highs of the bearish engulfing pattern at 3,594 euros per share.

To have a signal of strength, it is necessary that we exceed the maximum of the right shoulder of the bearish HCH figure to invalidate said pattern, that we violate the resistance 3,772 euros. The next resistance would be at the head highs at 4,598 euros and the very long-term downtrend line in black.

Support levels are located at: (1) the fuchsia long-term uptrend line, (2) the €2.992 level and (3) the key support zone around €2.748 / €2.808 per share.

The loss of the support area 2.748 / 2808 euros would represent a sign of weakness, since it would resume the structure of descending highs and lows that starts from JUN 2021.

The MACD oscillator has crossed the 0 line downwards, confirming the downward trend, after validating the HCH figure, whose objective could take us to levels of 2,948 euros per share.

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Gestamp Automotive on daily chart with Average Amplitude Range in percentage, MACD oscillator and trading volume

Gestamp Automotive on daily chart with Average Amplitude Range in percentage, MACD oscillator and trading volume

Gestamp Automotive on weekly chart with Average Amplitude Range in percentage, MACD oscillator and trading volume

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