We should not count on the rapid growth of the Moscow Stock Exchange shares yet

At the previous trading session they fell by 0.53%, closing at 172.97 rubles. The papers looked approximately at the level of the market. The trading volume amounted to more than Rb 773m.

Moscow Exchange shares have been moving mostly sideways in the range of 170-177 rubles throughout the past trading week. The technical picture remains completely neutral with no directional signals.

The external background today does not support the buyers, and investors may switch to more aggressive growth stories. In such conditions, we should not expect a rapid rise in shares of the Moscow Exchange for the time being. However, when the securities go above 177 rubles, a new growth phase might take place, especially with taking the pivot points in the range of 180-179 rubles.

Negative scenario remains the same: test of EMA200 near 170 rubles. A breakdown of this support could trigger an even bigger drop to 167 rubles.

The external background is mixed this morning. U.S. indices are down slightly after closing our main session on Friday. Asian markets are trading mixed today and show no unified dynamics. Futures are down 0.11%, up 0.94% and near the $83.7 level.

Taking into account the results of previous evening trades it is possible to assume that if the current background remains, the opening on shares of the Moscow Stock Exchange will be near or slightly above the level of Friday's closing.

Almost all of 2020 and the beginning of 2021 the stock was in a pronounced upward trend. The quotations were supported by such a strong fundamental driver as the inflow of private investors. The historical maximum was set in early May, after which the quotations went sideways within the wide range of 190-165 rubles. The reason was an increase in the key rate, pulling customers into deposits.

Weekly RSI curve has unloaded to a neutral 50 p. during the consolidation. While the price remains above 165 rubles, the top targets are above 190 rubles. Without significant drivers the stock might stay in the sideways position. If the situation worsens, the price descends under 165-160 rubles, where EMA50 is located. Such scenario is not excluded, but due to strong fundamental drivers it looks unlikely or short-term.