Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Darius Anucauskas

Can Engie SA Stock Break The Upper Side Of The Range?

Engie SA (EPA: ENGI) is a major French multinational electric utility company. Among investors, the company is seen a stable dividend-paying utility company, which could be considered for a longer-term holding period. Recently, Engie SA reported its H1 earnings, which have declined around 9,3%, due to the pandemic. However, it is not the only energy company out there, which had taken a hit from the coronavirus and all the global problems that came with it. The company is still optimistic and anticipates to have a net recurring income for the Group between 1.7 and 1.9 billion by the end of 2020. Let’s not forget, that one of the sectors, which tends to remain stable during high volatility in the equity market, is utility. In most cases, utility companies tend to have a low Beta, which means that they can withstand better the turbulent times.

From the technical side, the share price is currently trading within a range, roughly between the 10.54 and 12.11 levels. That pattern has been in play from around the beginning of June. This week we are noticing that the stock is trading just slightly below the 200-day EMA and the upper bound of the range, at 12.11. Given that ENGI is very close to the upper side of the range, this increases the chances for the stock to move further up. However, we would prefer to see that break first, before examining higher areas. Until then, we will remain neutral.

A strong push and a daily close above the 12.11 barrier, marked by the upper bound of the aforementioned range, could attract a few extra buyers, as such a move would also confirm a forthcoming higher high. The stock may then drift to the low of March 11th, at 12.71, a break of which might open the way to the 13.60 level. That level marks the low of March 9th.

Looking at the RSI and the MACD on our daily chart, we can see that the both are pointing slightly higher. In addition to that, the RSI continues to run above 50 and the MACD is sitting above zero and its trigger line. The two oscillators seem to be in support of the idea of seeing some upside in the near term. That said, as mentioned above, we would prefer to wait for a break of the 12.11 hurdle first, before aiming for higher levels.

On the downside, if the price slides back below the 11.68 hurdle, marked near the highs of July 6th and 21st, that may lead to some further declines within the aforementioned range. That’s when we will examine a potential slide to the 11.26 zone, a break of which may set the stage for a test of the 10.54 level, which is the lower side of the range.



The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.