Why Gazprom Has Plenty of Fuel Left in the Tank.
Cập nhật
Gazprom has been undervalued for years, so why buy today? The price spike of 2019 shows a change of sentiment. Investors are now willing to dip their toes into Gazprom.
Statistically, stocks that are trading at 12-month highs, perform better in the long term than otherwise. So the 2019 price spike is actually another good reason to consider investing in Gazprom.
Looking back over the last 4 years, Gazprom failed to break above $5.3 (a technical “resistance” line). Making any buy above $5.3 a good entry point into Gazprom. That line was breached in 2019, and since then Gazprom rocketed up. Where is the next resistance? Potentially around $9.1 where historically there has been a lot of price action. It would not be surprising for Gazprom to range in this area for a time. Beyond that, the air is clear.
Arguably the most important thing to look at from a technical perspective is momentum. Momentum is the trend (up or down) of a stock’s price. Gazprom has been in a downward trend, below the 200 Day Moving Average (DMA), for most of the last decade. However, recent spike above the 200DMA has put Gazprom back into “buy” territory. This is a classic example of what Jim O’Shaughnessy would call: “a cheap stock on the mend”.
Cheap from its fundamental valuation, with price appreciation on the mend.
Statistically, stocks that are trading at 12-month highs, perform better in the long term than otherwise. So the 2019 price spike is actually another good reason to consider investing in Gazprom.
Looking back over the last 4 years, Gazprom failed to break above $5.3 (a technical “resistance” line). Making any buy above $5.3 a good entry point into Gazprom. That line was breached in 2019, and since then Gazprom rocketed up. Where is the next resistance? Potentially around $9.1 where historically there has been a lot of price action. It would not be surprising for Gazprom to range in this area for a time. Beyond that, the air is clear.
Arguably the most important thing to look at from a technical perspective is momentum. Momentum is the trend (up or down) of a stock’s price. Gazprom has been in a downward trend, below the 200 Day Moving Average (DMA), for most of the last decade. However, recent spike above the 200DMA has put Gazprom back into “buy” territory. This is a classic example of what Jim O’Shaughnessy would call: “a cheap stock on the mend”.
Cheap from its fundamental valuation, with price appreciation on the mend.
Ghi chú
Read the full analysis on Medium!medium.com/@charleswedwards/why-gazprom-has-plenty-of-fuel-left-in-the-tank-cbea4b08eb04
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