The technical picture points to a repeated growth of Aeroflot shares to the area of 68-68.6
On Monday, in the first hour the securities were rising to the resistance level of 68, but failed to break through it. After that, the decline began and the quotes tested the upper boundary of the descending channel. Then the market participants bought the drawdown, and the daily candle was fixed at the support level of 66.8.
Technical picture points to repeated growth to the area of 68-68.6. To keep the initiative for buyers, the shares need to stay above the support area of 66-66.8.
On the 4-hour chart, the RSI curve is in the neutral zone at 54 p. There are no divergences with the chart on the RSI indicator. On the daily chart, the price is under the 200-day moving average. These factors indicate neutral dynamics and medium-term weakness of buyers. First of all, we are looking at the working off of resistance and support levels: 69,5 и 66.
To lose control sellers need to rise and consolidate above the resistance zone of 68.6-69.5. In this case, the uptrend will resume with medium-term growth targets around 76-77.5 on the daily chart. This area will be interesting for shorting long positions.
The external backdrop is mixed in the morning. Futures are up by 0.1%. Asian indices are trading multidirectionally. in the minus by 0.1%. If the background remains the same, Aeroflot shares will open near Monday's closing level.
The maximum in Aeroflot shares was set in July 2017, since that month the securities are in a downtrend. During this period, quotations fell by 73%.
In October, there was a test of the strength of the strong support level of 55, and it held. And already on November 9, the largest daily trading volume in history took place, which is a strong argument in favor of the end of the fall and the formation of a new bullish trend.
This week the shares are below the important level of 69, due to which the continuation of the upward movement is postponed. There is a possibility of sideways range of 64-68 while the price is below 69.
The uptrend may develop after consolidation above the border of 71, in this case the next target will be the area of 76-82.
These marks will be optimal for profit taking in open long positions, as after reaching them there is a high probability of correction continuation without positive fundamental drivers.