The company is under strong selling pressure as a result of the downgrades of its target price by several analysts.
In a few weeks the stock has gone from struggling to try to overcome the annual highs (4.30-4.32 euros) to piercing some structural supports. Telefónica could look for support around the level of 3.60 euros corresponding to the last major relative low left last summer, although a further correction in search of the primary support range located around 3.45-3.50 euros would not be ruled out at all. This level could act as a good trend inflection point, especially if the market likes the next quarterly results.
Pro1 PREMIUM Portfolio
Resistances: €3.90, €4.20, €4.30, €4.60.
Supports: €3.60, €3.45, €3.20, €2.80.
Targets: (Bearish) €3.60, €3.23, €3 (Bullish) €4.3.
Trend structure in TELEFONICA:
- Short term: Bearish.
- Medium term: Neutral.
- Long term: Neutral-bearish.
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