WED 5/28: GGAL – Post-Earnings Reaction Centered on Key Moving Averages

10:32 AM – GGAL is trading in a somewhat volatile fashion near its 50-day moving average this morning following its Q1 earnings release — a common reaction.

Earnings came in weak, with net income down 63% year-over-year, driven primarily by a sharp increase in loan loss provisions. Still, the stock is showing some resilience. A close above the 50 DMA would be a constructive sign for current holders.

On the downside, the 200 DMA now serves as critical support — currently at $55.20. A breakdown below that line would be viewed as a serious technical failure and would likely trigger a FINAL SELL SIGNAL under our system rules.

We’ll be monitoring closely through today’s close.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.