The first target for Lukoil shares can be set at 7,000 rubles
On Wednesday, Lukoil shares showed market-level dynamics. Rb 6850 level still remains as a resistance, forcing to look at growth prospects more conservatively. Today trading turnover may be low on the back of the holiday in the USA, so there may not be any significant change in the technical situation. At the same time, record oil prices in rubles give all reasons to buy.
On the daily chart you can clearly see how the signal line of the RSI oscillator has turned from the oversold zone, indicating a reversal. Although the short-term dynamics of the stock may remain subdued, a renewal of the lows is no longer expected. On a longer range buying might dominate. As the first target we can designate the round mark of 7000 rubles, the overcoming of which will open the way to further recovery.
On the medium-term horizon the outlook on the paper is positive. Current forecasts for oil prices in 2022 let us hope that high dividends in 2021 will not be a one-time thing and will support the attractiveness of the securities in future. In case of sentiment warming, quotations may well return to the area of 7,500 rubles by the end of the year and even renew the highs.
The external background is mixed in the morning. U.S. indices rose after closing the main session on the Moscow Exchange. Asian indices are trading multidirectional. Futures are up 0.3%. today down 0.02%. Futures on Lukoil shares during the morning session added 0.5%. All this suggests that if the background remains, the opening will take place near the closing level of the previous trading day.
The long-term view on the stock is positive. The forward dividend yield allows us to count on a positive revaluation to the area of 8000 rubles per share. Such a move will be within the framework of a multi-year uptrend. At the same time, high oil prices will be an important factor for the realization of such a scenario.