Novatek – the downward trend continues
Falling gas prices and US sanctions continue to have a negative impact on Novatek's shares.
The decrease in gas prices is due to the fullness of gas storage facilities in Europe and the warm winter on the continent. Regular supplies of liquefied natural gas from the United States are also a factor exerting pressure on the price of gas, which make it possible to practically not consume gas from storage facilities.
The negative aspect is the sanctions pressure on the company, as a result of which Novatek declared force majeure on the Arctic LNG - 2 project, which may indicate a significant impact of sanctions 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 14% from October highs, while the MICEX index decreased by 3.5%, indicating weakness in the company's shares. The RSI oscillator has gained a foothold in the sales area on the daily chart.
The point of attraction of the price is the intersection of the uptrend and the 0.38 Fibonacci level, which implies a decrease in the area of 1,350 rubles. We believe that when the price reaches the level of 1,350 rubles. It is worth considering buying shares as part of a rebound.
STOP LOSS
Do not forget about risk management. If the price is fixed above 1,550 rubles, the scenario with a further price drop is canceled. If the scenario is implemented and the securities are purchased, then we recommend setting the stop at the level of 1280 rubles.
We do not recommend opening a short position, due to the significant risks when playing short.
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/
