H4 Bearish #batpattern on its way?Looks like BBVA has hold still surpassing 4.37 resistance level this friday closing. In the short term, on February 12 we could see BBVA reach 5€ level and drop back down to 4.37€ again due to the bearish bat pattern that could have been shaped in the background. So long term technical perspective is bearish. However, keep in mind that BBVA plans to buyback 10% of its floating capital using the $9700 million it got from selling its USA business in Nov 2020. BBVA has also abandoned merging plans with Banco Sabadell, what makes its investors breath better. Garantii, its business in Turkey is also not a priority according to last BBVA press conference (which means any bad behavior of Turkish lira will not be as catastrophic for the company as we've seen over the last couple of years). Therefore, according to a fundamental perspective, BBVA could also be bullish in the longer term. The thing here is: when will the company have available the $9700 million? And when will it buyback 10% of its shares? Will it comply with its promises? And will the covid19 cede and ease tensions among banking business? Or is there still uncertainty over the banking sector? Time will tell.
But between Feb 12 and May 13 I expect downward behaviour due to potential bearish bat pattern prophecy and 14 period RSI in H4 graph above 70 . That's why it is a short investment strategy at the moment as of 5€ level. Longing from 4.42 to 5€ might also be a good decision if covid19 tensions ease.
