The growth potential of Lukoil shares is still limited to the price zone of 6500-6560 rubles

On the previous trading day it decreased by 1.27%, closing at 6363 rubles. The paper looked better than the market, which decreased by 2.28%. The trading volume of the stock on the main market amounted to 10.2 bln. rubles, while the average for the month was 10.7 bln. rubles. Average daily range for 5 days is 300 minimum steps.

Lukoil's shares were declining with the market on Wednesday, but at the end of the session they showed more stable dynamics. The ascending wedge on the 4-hour chart widened due to the formation of a new local minimum, which cannot be called a positive signal. At the same time, the stock's stability against the market and the rebound formed at the evening session give hope for recovery if the sentiment improves. At the same time, the growth potential is still limited by the pre-pandemic price zone of RUR 6500-6560. There are no drivers for a more significant rise.

When the correction scenario is realized, the depth of the first downward wave will be of interest. If the local minimum turns out to be above 6150 rubles (the level of 50-period average on the 4-hour chart), it will be a good support for prompt recovery. In case of a deeper drawdown before the tops are renewed, we may see horizontal consolidation around 6000-6300 rubles.

The external background in the morning is moderately positive. American indices grew after the closing of the main session on the Moscow Exchange. Asian indices are trading in positive territory. The futures are up by 0.08%. today are down by 0.2%. All this suggests that if the background remains the same, the opening will take place near the closing level of the previous trading day.

After exiting the prolonged consolidation around 5,500-6,000 rubles, Lukoil quotes are ready to continue recovery. The upside potential is located near the levels of early 2020, when the quotations marked the historical maximum at RUB 6810. The record could be rewritten. The psychological level, which could be used by investors as a profit-taking target, could be 7,000 rubles.