BNZL Stock Price: BNZL on the Verge of Breaking 3rd Support

• The stock price of BNZL has experienced a downfall since its last high in April 2023.
• The bulls seem active in the stock as the price is breaking strong supports.
• A bounce back is expect as the stock is near its immediate support, while the RSI has something interesting to show.

Over the past six months, the stock price of BNZL has been on a tumultuous journey. Starting towards the end of December 2022, the price found support at a key level. This marked the beginning of a positive trend for the bulls, with the price surging above its 200 EMA and encountering some minor corrections along the way. The momentum continued as the price maintained support from its 50 EMA.

However, the bullish rally faced a setback in April 2023 when bears entered the scene, causing the price to plummet to £3,217. This decline breached multiple support levels, causing concern in the market. The situation escalated further as the stock price broke through its seven-month-old support at £2,697, confirming the apprehensions of market participants.

Technical Analysis and Prediction of BNZL Stock Price

At the time of writing, BNZL stock price has crossed its major support level and is heading further down toward its immediate support of £2,672. At this point the stock is trading at £2,697, which is just slightly above its support level. The indicators provide valuable insights regarding the possible short-term future.

The MACD graph, for example, shows a bullish crossover between the MACD and its EMA, an event that occurred during the middle of July in this year. However, as the price broke its support level, this crossover was not sustained.

After fighting for some time the bulls seemed to have given up, as the MACD and EMA lines went on to chart a bearish crossover. The EMA line is on the top at -42.95, while the MACD line is at -48, indicating a weak price momentum in the recent past.

The RSI graph, on the other hand, shows that after touching its oversold level of 23 back on the 12th of July 2023, the RSI line spiked off towards its neutral territory and fell after its SMA made a bearish crossover. Currently, at the time of writing, the RSI line is at 27, which is close to the oversold level of July, and a bounce back is expected. The SMA is at 31. 

The EMAs were on a bullish trajectory until the end of the bullish run in June 2023. The 50 EMA made a bearish crossover with the 200 EMA back in the middle of July and is currently showing no signs of a trend reversal. The current levels of the 50 EMA and 200 EMA are at £2,859 and £2,946, respectively.

The immediate support is at the level of £2,672 while the second support is at the level of £2,568. On the other hand, the immediate resistance is at the level of £2,784. And the second resistance is up at £2,857.

Conclusion

The company’s solid financial position and positive net profits point towards its growth phase. Suggesting that the current decline is driven by short-term market sentiment rather than underlying weaknesses.

Looking ahead, the future trajectory of BNZL’s stock price is contingent on how it interacts with its immediate support level. Should a breakthrough occur, a temporary divergence follow by a return to the support level could be in the cards. Conversely, a rebound is also feasible, bolstered by the RSI’s indicative signal.

Technical levels

Support: £2,672, £2,568

Resistance: £2,784, £2,857

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.