Stock of the day: Iberdrola

We’re wrapping up the month with a really handsome setup on Iberdrola, a Spanish energy company where we see occasion for a very promising long position.

First of all, you can see that we’re currently on the highest levels since May 2021. On the way there, the price managed to break a few major resistances. The first one was the long-term down trendline (green). The second one was the area around 10.4 EUR (yellow) which acted as a support in April. The third one was the upper line of the pennant formation (red) which described the sideways movement this month. The last one was the area around 10.7 (orange), which for Iberdrola is an absolutely crucial level, respected many times since the end of 2020.

Buyers managed to break all of those levels which simply show their dominance and allows us to believe that more good days for bulls are still ahead of us. The positive sentiment cancels when the price breaks the yellow support but chances for that now are rather limited.