Printer Friendly

UFS Investment Company - Technical Analysis - Rosneft, The Leader Should Advance, May 16, 2013.

Rosneft: The Leader Should Advance

After a five-quarter growth phase (since Q4 2008), Rosneft's shares started a correction and finished down at 171.04 rubles. Upon completion of the correctional development A-B-C the share price started a growth impulse, whose expected structure is represented in chart 1. We see 400 rubles per share as the long-term target for growth.

(To view the original document, please click on the link below:

http://reports.aiidatapro.com/brokers/UFSen/20130516-Rosneft_TheLeaderShouldAdvance.pdf)

Indicators: in the weekly chart MACD gave a bearish signal this February, followed by a correctional descending wave [2]. The uptrend indicator DMI+ is located slightly below the downtrend indicator DMI-, and they are converging; the trend strength indicator ADX is in the middle of the scale and is going slightly downwards, which is signalling the waning downtrend and is due to the completion of the downward wave [2]. The indicator based on ADX dynamics sent a sell signal in February 2013, followed by the descending wave [2]. At the moment the indicators are poised for buy signals; the hourly chart (chart 2) shows that Rosneft's shares surpassed the upper end of the medium-term downward channel, formed a reversal pattern a double bottom, which can serve as an impetus for buy signals in the weekly timeframe.

Recommendation: buy Rosneft's shares at the current price (219 rubles) with a view to selling at 400 rubles (+81.82%), with a stop at 213 rubles (-3.18%); time horizon is 49 months.

Support: 218.24; 210.26; 190; 171; 155.

Resistance: 226.69; 255; 275; 291.36; 350; 375; 400.

****

Copyright: UFS Investment Company,. All rights reserved.

For further information please contact: UFS Investment Company,

129090, Moscow, Protopopovskiy lane, 2

Tel.: General: +7 (495) 781 02 02

Fax: +7 (495) 781 73 07

e-mail: research@ufs-federation.com, http://en.ufs-federation.com
COPYRIGHT 2013 AII Data Processing Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Russian Banks and Brokers Reports
Date:May 16, 2013
Words:307
Previous Article:UFS Investment Company - Mechel, Q1 2013 Operating Results, May 16, 2013.
Next Article:Veles Capital - Trader's daily - May 16, 2013.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters