Air Liquide Profit-taking after the publication of its results?
Analysis published on Wednesday April 26, 2023
Faced with the domination of luxury within the CAC 40 index, Air Liquide (AI) has the merit of charting its course without making waves. Indeed, one of the fund stocks held by many French-speaking retail investors has just had a series of historic highs since March 31.
Although the underlying trend is clearly bullish, prices are currently in contact with the upper limit of a bullish channel. At the same time, the RSI is overbought. While the MACD’s momentum shows signs of settling on the upside according to the evolution of the histograms. These technical signals could urge investors to be cautious, at least in the short term. In this sense, the publication of the results for the first quarter of 2023 could serve as a pretext for profit taking, which itself would be legitimate. And it doesn’t matter that it meets consensus expectations. Especially since AI’s management is used to being conservative about its growth prospects.
In the event of a short-term consolidation, the title could land in the direction of €152. With the possibility of a throwback on this support which would allow us to start hunting again towards new historical highs. On the other hand, a bearish extension below €152 would bring prices back towards €142. As a result, it would negate AI’s rebound since October 2022 and deflate an overvaluation bubble. However, the alert zone of €115-116 to bury the underlying trend from the low points of the Covid crisis remains very far away to worry the bulls.
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