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The actions of Mapfre They are not performing well after corrections for the Covid-19 pandemic. In fact, at yesterday’s closing prices they accumulate a depreciation of 34.5% since the beginning of the year, which should not surprise us because it is in line with the other values.

And this May that ends this week is not working well either. The publication of its results for the first quarter has discouraged investor interest and therefore so far in May accumulates a drop of 7.5%.

After falling from 2.4 euros to almost 1.3 euros in March, the value had a significant reaction to almost 1.8 euros, but since then it has developed again a guideline of decreasing highs and lows guided by the medium-term average that we can see in the following red color chart.

Evolution of Mapfre’s shares
                    Eduardo Bolinches

It seems that this average is a great wall for continuity of climbs And now, in the midst of all the stock market euphoria that we are experiencing with an S&P 500 above 3,000 points and an Ibex 35 determined to go eat the 7,000 points, it has stood again before that wall.

I do not know if this time he will be able to knock him down or on the contrary we will attend the fourth failure so far this month, but I do know that we must be attentive to what happens in Mapfre in the next sessions and don’t take either option for granted until we see today’s close.

The volume of the ongoing reaction has been decreasing sharply. And that is not a precisely positive symptom; But everything can happen and all we have to do is wait patiently for the value to be decided by one option or the other.

See closings above 1.59 euros today will be the signal that many investors are waiting for and with it it will be the starting gun with a second confirmation closing of a race to reach 1.74 euros again and then 1.79 where the continuity of the reaction will really be played.

Come this case the only thing to watch is that we do not see prices below the medium-term moving average again.