It seems that history repeats itself endlessly or at least that is what we can conclude from a first look at the chart of Endesa’s shares.
With a clear support level in the area around 20.40 euros and a resistance around 21.6 at the top, the value has practically 4 months with a single false break at the top at the end of last May.
Furthermore, the vast majority of downward turns in the current price zone have occurred somewhat abruptly. In fact, Endesa shares may today leave a clear sunset star shaped bearish twist figure and that would culminate with closing prices today below 21.07 euros, where both the medium-term and long-term moving average also pass very close.
Evolution of Endesa Eduardo Bolinches ProRealTime shares
Therefore, if this turn is confirmed, it is most likely that we will end up seeing the price again this week looking for support in the area of 20.40 euros. Y I better act as a support as it has been doing in the last 4 months, because in case of not doing it we should look for the next movement also lateralized that extends from last summer but much broader and with ground area around the 19.30 euros and with the possibility of testing the minimum of last March at 18.99 euros.
The only way to avoid this corrective scenario is through dissolve the sunset star project, turn upward and begin to see sustained prices above 21.50 euros. Faced with this scenario, the breadth of the current range in which Endesa’s prices are moving would point to a test at the all-time highs that we saw before the pandemic at 23.13 euros.
A bullish scenario, which will require a volume increase more typical of non-holiday months by way of confirmation since the risk of seeing a false break at the top again would also be high if the volume does not follow.