French oil company Total's share price has been adhering perfectly to technical analysis guidelines. This is evidenced by the breakout from resistance marked by the bearish trend line of recent months and thanks to the sudden rally that started in late September. Interestingly, the correction witnessed in recent sessions has taken prices to the support area marked by the same trend line, previously resistance and now support. This is known as a 'throw-back' and is very typical.

We believe that the best strategy would be to open long positions close to the aforementioned trend line (now at €35.75), placing a stop-loss order at the horizontal support line at €34.50 (in terms of closing prices). As long as the price does not lose this support level, we would not rule out an imminent rally with a price target of €40, followed by €41.



JR

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