Novatek – gas price does not inspire optimism
"The EU may ban LNG supplies from Russia by 2027"
Low natural gas prices and the US interest in supplying its own gas to the European market have a negative impact on Novatek's supplies to the European market. Novatek also faced significant difficulties in implementing LNG projects and supplying tankers for gas transportation due to sanctions, which has a significant impact on the company's activities.
TAKE PROFIT
Since the end of October, the company's shares have been in a downward trend and decreased by 19% from October highs, while the MICEX index rose by 5%, indicating significant weakness in the company's shares. The shares stopped the decline at the level of 1,350 rubles and rebounded, but we do not see a picture of a trend reversal. We believe that the shares will continue their downward movement to the level of 1,250 rubles, which is minus 12% of the current price of 1,417 rubles.
STOP LOSS
Do not forget about risk management. If the price is fixed above 1,480 rubles, the scenario with a further decline in shares is canceled.
The stop order[1] can be placed at the level of 1,460 rubles. (3% of the current price of 1,417 rubles).
[1] Risk management includes: setting a certain type of stop loss at certain levels, a position set method, a position reduction method, holding certain timings for decision-making and is of an individual nature, based on your personal risk profile. If you have any questions, you can contact our trader for advice (Portfolio Consultant package at the link https://eraperemen.info/priobresti/).
Disclamer. The analytics presented here are designed for people who have at least a basic understanding of the Russian financial market. If you have difficulties with the practical implementation of our recommendations, you can use the services of our specialists with the Portfolio Consultant package at the link: https://eraperemen.info/priobresti/
