CaixaBank It is already listed as the first Spanish bank after its merger with Bankia. The possible synergies of the union between the banks and the expectations of the economic recovery, which interest rate yields would increase, could benefit the banking sector and especially this entity.
CaixaBank shares plummeted from 2.95 euros to 1.5 per share registered by the company last May due to the drop in its income caused by the coronavirus. From there, stocks have recovered almost all of the drop up to 2.67 euros.
From a technical point of view, price is in an ascending channel and appears to be heading to the top of that formation. It would be interesting to take bullish positions with a goal of recovering the entire corrective movement, up to 2.95 euros, an area of strong resistance.
CaixaBank stock market performance. XTB
Also, the 100 session moving average is acting as support for stocks of value.
The economic recovery could take longer than expected due to the slowness of the vaccination process and this could harm cyclical sectors such as banking.
In this sense, for minimize the risk of our trading strategy We placed a stop below the bottom of the channel at 2.32 euros per share, a possible pivot zone that previously acted as resistance.
*** Guillermo Torrego is an analyst at XTB