Stock of the day: Saint-Gobain

I hope you had a great time during Christmas and are ready to come back to trading! Today’s stock of the day is a French company called Saint-Gobain. Here the price is ready to make a major move and it will probably be a movement to the upside.

Why do we think so? Well, SGO is definitely in a very healthy uptrend. A few days ago, the price proved it by bouncing off a long-term uptrend line (red). Saint-Gobain also defended a crucial horizontal support on the 56 EUR. It looks like we’re ready for an upswing.

There is one thing that’s blocking us though. This thing is the horizontal resistance on 61.7 EUR (blue). It is blocking the way north since September, so there is no doubt that this is very important. Price breaking this resistance would mean an amazing long-term buy signal. On the other hand, the price closing a day below the orange support would mean a signal to sell. The first option looks more probable at the moment.