Friday, July 1

Repsol: buy signal activated

Repsol is an energy company in full transformation from fossil to renewable. High oil prices give you room to accelerate your strategic plan and make new investments and grow as you maintain a healthy balance sheet. Your share has very attractive valuation multiples (Price on earnings less than 10x, Price Book Value less than one and Profitability per dividend greater than 5%), it can protect us in a scenario of high inflation and receives positive evaluation for fundamentals (see “Repsol: growth, solvency, an ambitious and cheap plan by multiples”).

The technical indicators in the premium area give Repsol’s action a total passing score: 6.0 points out of a maximum of 10 available. The algorithm is programmed to detect and follow the background uptrend and a score equal to or greater than 5.0 points implies that most of the analyzed patterns (trend, momentum, volume and volatility) favor the price to climb positions.

Repsol on daily chart with amplitude range in percentage, MACD oscillator and trading volume

Repsol graphical analysis as of December 30, 2021

The price manages to bounce in the short term from the low of NOV21 located at 9.602 and activates a buy signal in the MACD oscillator that starts from oversold levels. The upward turn is supported by volume and allows the price series to maintain a tiered structure of rising significant highs and lows. Taking long or buying positions in favor of the bullish bottom has room and the nearest significant resistance is not up to 11,780.

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