Mechel shares rose by 2.38% in the last trading session. The closing price was RUB 232.27. The securities traded better than the market. The trading volume amounted to 9.13 billion rubles.
Short term picture
• The stock hit its next upside targets of 240.9-245.9 midweek. After the pullback, a new growth impulse appeared. The technical picture on the hourly chart is now on the buyers’ side.
• Buyers are aiming for growth in the maximum area of the daily chart of 266.4–276.2, which is close to the safe targets of 275.6–286 of the weekly structure. The growth scenario is a priority until the minimum of 233.07 is broken. When the level of 275.6 is reached, it is safer to start taking long speculative positions.
• On the daily chart, the RSI curve is at 74 pips. On the 4-hour chart, the stock is above its 50- and 200-day moving average. First of all, we monitor the resistance and support levels: 276 and 233.07.
External background
The external background is neutral in the morning. S&P 500 index futures are down 0.1%. Asia-Pacific indices are trading predominantly in the red zone. Brent oil is up 0.2%.
Resistance levels: 266 / 276 / 286
Support levels: 233,07 / 200,5 / 185,5
Long term picture
Goals and scenarios
• The monthly structure formed during 2022 indicates long-term safe growth targets of 191–206 (achieved). Maximum target 269.
• A new growth impulse in the weekly chart has formed – safe targets are 275.6–286. This scenario is relevant until the low of 184.85 is broken.
• The long-term structure of the movement indicates that after the correction and trade, continuation of long-term growth will be more organic. Until the price breaks the 161.9 mark, the long-term uptrend is relevant.
• The weakening of the ruble in 2023 increases the attractiveness of export-oriented companies. Together with high prices for coking coal, this creates a favorable background for the growth of Mechel shares. The company historically supplies most of its coal to the Asia-Pacific region and is weakly affected by EU sanctions.
• The positive environment allows Mechel to reduce its debt burden and also increase investment in fixed assets. In the future, this should result in a restoration of production volumes. An additional positive driver is that the company should not come under pressure from windfall tax.
Read also: Detailed description of all technical indicators
BCS World of Investments
2023-10-20 05:37:30
#Mechel #growth #target #Technical #analysis #BCS #Express #10.20.2023
