The upside target for VTB shares is 0.0515 rubles

At the previous trading session rose by 2.33%, closing was at 0.051165 rubles. The paper looked better than the market, which added 1.65%.

From the beginning of Wednesday's trading session, VTB shares broke through the upper boundary of the rising channel, as well as the levels of 0.05 and 0.05025 rubles.

Shares look better than the market for the second day. Breakdown of the upper border of the rising channel is positive for the short-term picture. Now the growth target is 0.0515 rubles, as well as the upper border of the new channel, which is near the resistance mentioned above.

Given VTB's fundamentally strong case, the stock's rise in 2021 looks justified. However, from the technical point of view, it is worth noting the overheating on the oscillators on the hour marker. The rebound may continue in the coming days, but it is unlikely to break the new sloping resistance line without a corrective pullback.

On the daily interval indicators are mostly in neutral positions. The oscillators are close to overbought, but there is still a potential upside.

The external background is mixed this morning. U.S. indices after closing our main session on Wednesday decreased slightly. Asian markets are trading in positive territory today. Futures are up 0.1%, down 0.8% and near the $71.7 level. All this suggests that if the external background remains, the opening will take place near the previous day's close.

Long-term expectations for the paper are moderately positive. According to the results of the 1st quarter of 2021 VTB showed a record quarterly profit, which is a strong driver for growth. The management expects that the second quarter will also be successful, and the profit target for the year will be achieved, and at the upper limit. All this creates favorable conditions for further growth of quotations.

After renewing local tops on strong Q1 results, VTB shares corrected, unloading overheated oscillators. The two-week correction took the stock to the level of the 200-period moving average, where the rebound started on the news on dividends and strong forecasts for 2021. Growth target for the stock over the next 12 months is 0.0575-0.06 rubles.