Red Eléctrica is supported by the long-term upward trend line

Red Eléctrica is supported by the long-term upward trend line

Electrical Grid Control

The price of REE began a correction on AUG 22, leaving a new all-time high of 19,925 euros per share.

The value missed the lower side of the bullish channel dotted in green, where we have finally reached the target projection of the channel towards 17,170 euros per share.

The market has opened with a bearish gap towards the fuchsia-colored long-term uptrend line, levels very close to the relevant support at the previous high lows of 16.825 euros per share, where it could find support to start a recovery.

To have a signal of strength, it is necessary to violate: (1) the short-term black uptrend line on a daily close, (2) the 200-period or long-term simple moving average, and (3) the of resistance comprised around 17,730 / 17,910 euros per share.

The support levels are located on the long-term bullish trend line in fuchsia color and the previous growing minimum of the bullish trend at 16,825 euros, whose violation would put at risk the structure of ascending minimums and maximums that starts from MAR 2021 .

The MACD oscillator has reached extreme oversold levels, so if the market manages to violate the black short-term downtrend line, a new market floor could be generated after the assisted correction in the long-term uptrend line. term in fuchsia color.

To have a signal of additional strength, we are going to watch that the trading volume accompanies the rise in price, with volume growth, and that we have a rebound, in the possible violation of the short-term downtrend line.

Red Eléctrica in daily chart with Average Amplitude Range in percentage, MACD oscillator and trading volume

REE on daily chart with medium and long-term analysis template.
REE on daily chart with medium and long-term analysis template.
REE on daily chart with medium and long-term analysis template.

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