Why Gazprom Has Plenty of Fuel Left in the Tank.
Updated
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.
Note
Read the full analysis on Medium!medium.com/@charleswedwards/why-gazprom-has-plenty-of-fuel-left-in-the-tank-cbea4b08eb04
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.