Sacyr, pending to solve the triangle to find direction

Sacyr, pending to solve the triangle to find direction

Sacyr is approaching the vertex of the triangle. If you break it upwards, there are projections up to 3 euros

Sacyr technical perspectives

Sacyr has so far managed to recover the side scenario prior to the crisis and would be consolidating this phase of the recovery, forming a triangular pattern that must be resolved to define its directionality.

The value maintained a positive bias before the start of the coronavirus crisis, since at the end of 2019 it had just exceeded the resistance zone of 2.50 euros that had slowed the advances of 2017 and 2018. It could pose an attack on the zone of the 3 euros with the continuity of the beginning of the exercise.

With the outbreak of the crisis, it undergoes a strong correction, like the entire entry market, causing it to lose its previous relative lows.

Vertical drop

These levels were reached in 2018 and brought the value to around 1.45 euros. They drove the stock to levels not seen in the early 2016 lows, above 1.1 euros, which were drilled to 1.05 euros. With extension up to 1 euro.

The fall was very vertical and the first stretch of rebound above that minimum level to 1.6 euros was consistent. After a few weeks of consolidation above this level, it had a new momentum that took it above 2 euros.

It reached 2.13 euros, which it could not consolidate and again fell to the area of ​​1.8 euros. From this movement, it has been pivoting around 2 euros for the last few weeks, building this triangular pattern.

Now it is approaching the vertex of it and it is important that the break occurs before reaching it so that it has the orthodox behavior.

Impulsive stretch

To confirm a possible escape to the upside, it must intentionally and consistently exceed 2.1 euros and successfully attacking the previous highs of 2.13 euros, it would activate an impulsive stretch with a theoretical objective in the area of ​​2.4 euros. euros. The resistance would be at 2.2 euros, prior to the closing of the gap.

With this, it would recover the positive bias within the previous advance movement and would have options to attack the annual maximums before 2.8 euros again, to think about the projection up to 3 euros.

This would be the positive scenario if it breaks the triangular pattern to the upside, acting as a continuation of the movement.

Downside risk

The risk lies in the downward exit, which would be confirmed with the intentional loss of the level of 1.85 euros and the attack with drilling in the area of ​​1.8 euros, which would trigger a new correction with the objective of the 1.45 euro area of ​​the significant relative lows after the first advance of recovery.

There it could still be within the larger pre-crisis side scenario. But below 1.40 euros, it activates the correction with the objective of the annual minimums first and if it loses the reference of 1 euros, projecting itself to lower levels.

We still cannot rule out this scenario given the current situation and below 1.5 euros in weekly closings, all alerts should be activated.

sacyr by Codina August 21
Sacyr technical perspectives, by Josep Codina