Heineken profit falls – key resistance at 80.7E
From a chartist point of view, the stock price has landed on a horizontal support near 68E and is posting a rebound. The danger is not yet over as prices are approaching from the upper end of a short term consolidation range near 79.5E. Former bearish gap plays a resistance role at 80.7E. In addition, the daily Relative Strength Index (RSI, 14) is capped by a declining trend line. The 50-Day simple moving average currently at 83.9 is heading downward.
As long as 80.7E is resistance, the bias remains bearish. A new down move is likely towards the lower end of the trading range at 68E.
Alternatively, a break above 80.7E would deliver a bullish signal and would call for a rise towards 90E (overlap).