On the previous trading day, Lukoil shares fell 1.76%, closing at RUB 5,594.5. The paper looked worse than the market, which fell 0.79%. The share traded volume on the main market amounted to RUB 7.5 billion. with an average monthly of 8.8 billion rubles. The 5-day average daily range is 270 minimum steps.
On Wednesday, Lukoil shares consolidated below RUB 5,650, signaling an alarming trend. Despite the positive background, the quotes are showing a strong negative trend. The price chart fell below the 50-hour average again. The next support is the level of 5500 rubles. If it breaks through, we can see a new wave of decline, although this scenario still looks unlikely.
The mid-term outlook at current prices is close to neutral. Current and forward oil prices remain stable, which supports the attractiveness of oil stocks. At the same time, there are no new positive drivers that could give impetus to the renewal of the January highs. It can be assumed that the dynamics of Lukoil shares will remain mostly sideways. The fair range can be within 5500–5800 rubles.
- Nearest support levels: 5550/5500/5425
- Nearest resistance levels: 5650/5710/5800
The external background is mixed in the morning. American indices remained at the same levels after the close of the main session at the Moscow Exchange. Asian indices are trading in different directions. S&P 500 futures are up 0.05%. Brent crude is down 0.5% today. All this suggests that if the background persists, the opening will take place near the close of the previous trading day.
On the weekly chart, the breakdown of the support of 5500 rubles. turned out to be false, and the next weekly candle closed above the mark. Taking into account the positive situation on the oil market, further dynamics may be positive, although quick results should not be expected. On the horizon of 2021, optimism in the oil market and a strong fundamental case of the company dispose to recovery in the region of 6,500 rubles.
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