One of the largest oil and gas companies in Spain and Latin America Repsol (BME: REP) continues to fight for investor interest, showing stability and resilience against the recent fall in commodity prices. This week, the company delivered its earnings report, which showed a loss of 487 mln euros. Although the company also reported a decline in net profit, REP is taking strong measures to lower its operating costs and maintaining shareholder renumeration. This might have been enough to keep the share price afloat and from the technical side, we can even see that it continues to slowly grind higher, while running above a short-term tentative upside support line drawn from the low of March 19th. However, in order to get comfortable with higher areas, we would like to see the stock rising above the current high of this week, at 9.142, and also above the 200 EMA. For now, we will remain cautiously bullish.
If, eventually, REP does rise above the 9.142 barrier and pushes above the 200 EMA on the 4-hour chart, we will then start targeting the 9.608 hurdle, which is the low of March 6th. The stock could stall there for a bit, or even correct slightly lower. That said, if the share price continues to balance somewhere above the 9.142 territory, REP may experience another uprise, which could possibly bring it back to the 9.608 zone. If this time that barrier fails to provide resistance and breaks, the next potential target could be around the 10.670 level, marked by the highest point of March.
Looking at our oscillators on the 4-hour chart, both seem to be in support of the possible scenario discussed above. The RSI is above 50 and points slightly higher. The MACD is currently more on the flat side, however it remains above zero and its trigger line.
If the share price suddenly breaks the aforementioned upside line and slides all the way below the support area between the 7.506 and 7.523 levels, marked by the lows of April 24th and May 4th, this could spook any new investors from entering. REP may then drift further south towards the 7.122 obstacle, a break of which could clear the path to the 6.622 zone, which is the inside swing high of March 20th.
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.