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What if Santander is building a triangle to keep falling?

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The rebound from the March lows and after a 50% slump is being very shy. This in itself denotes a clear weakness in the price structure of the Cantabrian entity.

Technical analysis
OVERSALE VALUES

Short term

Medium term

Long term

In general, European banking is still very touched, much more than the size of the market. Proof of this is that to correct / adjust proportionally 38.2% of all the previous fall, the price should go to the resistance zone of 2.70 euros. Price levels far removed from the current ones. But the danger that we can find is that, in addition to the intrinsic weakness of this title, the price is building decreasing maxima and increasing minima. Or what is the same, is triangulating. And it is that experience tells us that when after a violent fall we have a triangle, it is usually a continuity of trend, that is, a bearish one. At the end of the day you may be trying to shape a 'pennant'continuity of downward trend. Which would have important new bearish implications for the coming weeks / months. Therefore, be very careful with this title and in general terms with the entire financial sector.

Santander daily chart

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