Rosneft shares gained 1.62% in the last trading session. The closing price was 580.25 rubles. The paper traded better than the market. Trading volume amounted to 8.3 billion rubles.
On Wednesday, at the beginning of trading, the quotes broke through the resistance level 572. By the end of the trading session, market participants were able to gain a foothold above the sellers’ control zone 572-580. The technical picture is on the buyer’s side and allows for a breakout of the 586 high in the coming days. This is the last resistance on the way to the medium-term goal.
Due to the consolidation of the daily candle above the level of 572, the medium-term scenario of growth to the area of 595-600 is relevant. The first signal for a pullback will be a breakdown of the 562.5 level, which may be followed by a deeper decline to the next level of 554.5. This option is not a priority; attempts to update the maximum are expected in the coming days.
On the 4-hour chart, the RSI curve is in the neutral zone near the 60 point mark. There are no divergences from the chart on the RSI indicator. On the 4-hour chart, the price is above the 50-day moving average. Technical indicators point to headroom for stocks to rise. However, first of all, it is necessary to monitor the price fixation on the daily chart above or below the levels: 586 and 554.5 to determine the scenario of the further movement of the shares.
What to do? For open medium-term long positions, the first target to sell is in the 595-600 zone. This area will be an interesting area to cut long positions. The priority is to achieve growth goals by fixing securities above the 554.5 level.
- Resistances: 586/595/605
- Supports: 580/572 / 566.5
External background in the morning is moderately negative. S&P 500 index futures are down 0.2%. Asian indices are trading in the red. Brent crude is up 0.1%. The opening of trading in Rosneft shares will take place just below the closing level on Wednesday.
Rosneft is the first oil company to return to levels seen before the February-March sale. From the lows of November 2020, Rosneft quotes have risen by 69%.
The last weekly candlestick consolidated above the level of 558, which indicates a possible resumption of growth towards medium-term targets of 595-600. There is still a global growth target of 620-650. Buyers need to stay above the 538 level to maintain the initiative.
If the weekly candlestick falls below 538, there is a likelihood that the decline will continue to the weekly support levels of 490-510, then the uptrend will resume. This scenario is not a priority until the price breaks the 526 support level.
In a long-term picture, you need to look at the close of the weekly candle at the end of Friday’s trading.
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