Rosneft shares need to pass 572 to resume the trend

fell by 2.49% in the last trading session of the week. The price at closing amounted to 567 rubles. The securities traded worse than the market. The volume of trades amounted to 7.6 billion rubles.

On Friday at the beginning of trades the shares reached 585 mark, but sellers showed their strength. Then during the trades quotations were declining, stopping at the support level of 562.5. The technical picture disposes to the rise of shares to the resistance area 570-572 to test its strength.

As long as the price is below the daily support 572, the medium-term scenario of growth to the area of 595-600 is postponed. If the securities pass below the level of 562.5, there is a risk of a deeper pullback to the next boundary of 554.5. Then the upward movement is likely to continue.

On the 4-hour chart, the RSI curve is located near the overbought zone at 69 p. There is a bearish divergence on the RSI indicator. On the 4-hour chart, the price is above the 50-day moving average. Technical indicators indicate the beginning of securities overheating. However, the first thing to watch out for is the price fixation on the daily chart above or below the levels: 585 and 572 to determine the scenario of further movement of the stock.

What to do? For open medium-term long positions, the first benchmark for selling is in the 595-600 zone. This area will be interesting for reduction of long positions. The priority is to fulfill growth targets by fixing the price above the level of 554.5.

The external background from the morning is moderately negative. Futures are down by 0.1%. Asian indices are trading predominantly in the red zone. down by 0.1%. The opening of trading in Rosneft shares will be slightly below Friday's closing level.

Rosneft is the first oil company whose shares returned to the levels seen before the February-March sell-off. Since the November 2020 lows, Rosneft quotes have climbed to 69%.

Last week's candle consolidated above the 558 level, which suggests a possible resumption of growth to medium-term targets of 595-600. There is still a global upside target at 620-650. Buyers need to stay above the 538 level to maintain their initiative.

If the weekly candle is below the 538 level, there is a probability that the decline will continue to the weekly support levels of 490-510, then the uptrend will resume. This scenario is not a priority until the price has broken the support level of 526.

In the long term picture, you have to look at the weekly candle close at the end of Friday's trading.