The technical picture in VTB shares looks negative

At the previous trading session fell by 2.37%, closing at 3.78 kop. The securities looked worse than the market. The trading volume amounted to more than 1.4 billion rubles.

Yesterday there was a strong sell-off in the Russian market, which also affected VTB shares. The price fell below two support levels of 3.85 and 3.81 kopecks. Bears and Bulls power oscillators are signaling sellers' advantage.

The technical picture at the moment looks negative. MACD curves on the daily chart indicate the formation of a downward trend. RSI indicator is directed downward and is below the neutral point (50).

The external background will not support the bulls today, which means that the decline may continue and the test of the 50-day moving average at 3.76 kopecks will begin. The 200-day moving average is also a bit lower - 3.71 kop. If these levels are passed from top to bottom, it will serve as a negative scenario for the continuation of the decline.

However, until the levels are passed, it is too early to judge about the change of the trend. The decline is within the framework of correction. Improvement of market situation and support of external background will be able to provoke a new phase of growth. A complete change of sentiment will be announced by a break of 3.65 kopecks from the top to the bottom.

The external background is moderately negative this morning. American indices after our closing on Thursday have slightly decreased. Asian markets are trading mostly in negative territory today. Futures are down 0.3%, down 0.21% and near the $55.65 level.

Taking into account the results of the previous evening trades, it can be assumed that if the current background is preserved, the opening of VTB shares will be slightly below Thursday's closing level.

VTB shares have been in an uptrend since mid-March 2020. It was interrupted in early August amid a reduction in dividends from 50% to 10% of net income. The market reacted with a sell-off, which led to the formation of a downtrend, and the price was close to March values.

VTB shares continued to decline until mid-October, when the company announced its intentions to pay 50% of net income for 2020. - The news became an excellent driver of share price growth.

The 50- and 200-week moving averages began to signal a reversal of the curves to the neutral direction. MACD curves continue to demonstrate the formation of an upward trend. RSI indicator is directed downward.

The return to the previous dividends remains a significant growth driver. To continue the upward trend, the stock needs to consolidate above 4.2 kop. This will open the way to levels above 4.5 kop. Quotes have consolidated above the level of 50-week moving average - 3.75 kopecks. - This is a positive signal for the continuation of growth. Taking into account technical signals, now the scenario of growth continuation is the main one.