Eutelsat Communications edging closer to reaching its all-time lows, but can the merger boost its share price in the long-term future?

The Frech group Eutelsat Communications has announced that the merger between itself and Britain’s OneWeb should increase its annual sales to €2 billion by 2027, while in 2023 its annual sales should amount to €1.2 billion. From a technical overview the stock is currently trading at €8.30 per share. Applying the Fibonacci retracement to the chart, first support level sits at €7.41 followed by a major support level at €7.00 where the 0% fib level rests. A break below the major support could see the stock slide further reaching its all-time lows. However, towards the upside the first resistance level sits at €8.53, which is just above the 23.6% fib level. A break above the 23.6% fib level could see the stock hike towards the major resistance at €9.34 (just below the 38.2% fib). MACD is currently negative and RSI reads 37, overall suggesting a negative stance. Investors may want to keep track of the company’s performance levels as Eutelsat believes the merger will benefit its business. Although, JPMorgan unconvinced. More information on Minipip - News & Events