The start of the business results better than expected led to a rise in the Spanish stock market last week. The company services and infrastructure for wireless telecommunications Cellnex will present results at the end of the week. And the consensus of analysts estimated a revenue of 427 million euros.
The titles of Cellnex are trading in a side channel. Now the price seems to go up to the top near the 55 euros per share. In addition, the quote just to cut the moving average of 100 sessions (grey line), which indicates a buy signal.
On A technical level, if the price is able to break the top of the structure, the target for the actions of Cellnex would be a move higher equal to the width of the training referred to. This level coincides with the maximum historical in the 60 euros. Our strategy would be to place orders above the resistance zone at 55 euros.
The situation in the equity markets can be compounded by the fear that the sharp increase in the number of cases per Covid-19 can hold back the economic recovery. The RSI is very close to level 70, that indicates overbought titles.
In this sense, it would be interesting to place a stop loss just below the lower part of the channel at 50 euros per share.
***William Torrego is analyst XTB