Grifols moves towards 11.13 euros after clearing significant resistance.
In the first session of the week, the Ibex 35 index will seek to confirm the 11,800 point mark and the formation of the morning star figure. 11,925 points as possible resistance. The business results will also weigh on the index, highlighting Grifols shares, which are positioned among the top performers on early exchanges.
It recently became known that the US Securities and Exchange Commission (SEC) has completed an investigation into Grifols. In a brief letter sent to the pharmaceutical company on October 1, the US regulator said it had “completed its review of its presentations”. without announcing any sanctions or opening a sanctions case.
With this statement, the SEC appears to accept as reasonable the explanations provided by the company at the time justified certain changes in accounting criteria following fraud allegations brought by Gotham City Research. This news had a positive impact on Grifols shares, which began to show an improvement in technical health in both the short and medium term.
Technically, the bullish reaction in Grifols shares has seen the price exceed the highs of recent weeks, suggesting the opening of a very interesting new bullish leg. This progress could bring the company to a significantly higher level if current market conditions and investor confidence continue.
If we analyze the performance of Grifols securities over the long term, we will see that its shares reached a maximum of around 15.92 euros at the end of 2023. However, starting from this level, movements of high volatility were observed, which took on a value annual minimum of 6.36 euros in just over two monthswhich reflects a phase of important instability for the company.
Evolution of Grifols shares
Tradingview
Having reached this low, Grifols began a recovery process characterized by a sequence of increasing lows and highs. This recovery pattern allowed the value to recover 38.20% of its previous decline, reaching medium-term market ceiling at 10.35 euros.a resistance he has encountered difficulties in recent weeks.
In the context of recovery, cost also shaped triangular figure which now seems to be trying to resolve. Additionally, the rise above the three most representative moving averages was a sign of value strength, especially the short-term (50 sessions), which acts as support for the stock and allows it to continue to rise.
Today, Monday, Grifols breaks through the key resistance of 10.35 euros, continuing the rebound seen since last Friday. This rise represents a resolution of previous weekly highs and opens up the possibility of a new upward stretchwith the next target at the horizontal resistance of 11.14 euros, which corresponds to the 50% Fibonacci retracement of the last major bearish segment.
A second close above EUR 10.35, which could occur today, would allow us to consider a bullish position on the price. In this case it would be possible to set buy order with the first bullish target at 11.14 euros. Given the volatility of the market, it is recommended to place a protective order for a loss of €10.30 on a closing basis.