The price of Grifols A. it began a decline in late May 2022, after reaching the upper side of the long-term bearish channel in fuchsia. Afterwards, the market described a sequence of descending highs and lows, forming a medium-term or minor bearish channel in black.
The value has found support on the lower side of the long-term bearish channel in fuchsia, from where it has managed to violate the upper side of the medium-term bearish channel in black on a daily close, with which we can estimate a target for bearish channel broken upward towards levels of 12,100 euros, would mean a recovery of 40.77%. If we measure the width of the channel and project that distance from the breakout point, we get the target.
In yesterday’s session, the value validated a figure of inverted HCH or triple bottom indicated in blue, since we had a violation of the critical point of 8,792 euros in a daily close and with an increase in volume. This allows us to estimate a short-term objective towards levels of 9,580 euros per share.
The following resistances are located at: (1) the 40 and 200 period simple moving averages, (2) the area of former support now turned into resistance 14.10 / 14.86 euros, (3) the upper side of the bearish channel long-term in fuchsia and (4) the last previous descending maximum of the long-term bearish trend in the area around 20.28 / 19.38 euros per share.
We have a gap that the market could cover at 11,520 euros per share.
The supports would be in the zone of minimums of the figure of HCH inverted 7,820 / 8,122 euros and the lower side of the long-term bearish channel in fuchsia.
As a sign of additional strength, the MACD oscillator started to rally after reaching the previous extreme oversold level, we watch an upward break of the 0 line, as a new sign of an uptrend.
The trading volume has registered upturns in the area of minimums 7,820 / 8,122 euros, indicating strength in said support. Then, we have had an increase in volume in the last three rising sessions, where we have validated the figure of inverted HCH or triple bottom and we have violated the upper side of the medium-term bearish channel, with which, it represents a positive or higher signal. confidence, in order to start a recovery.
Grifols on daily chart with Average Amplitude Range in percentage, MACD oscillator and trading volume
Grifols on weekly chart with Average Amplitude Range in percentage, MACD oscillator and trading volume