On Monday, Severstal shares fell in price by 1.38%, to 1332.4 rubles. Trading volume amounted to 860 million rubles.
Short-term picture
• Shares of Severstal yesterday begged in prices, despite Friday’s buyout of an impressive intraday drawdown. Higher closed daily candle quotes did not hold for long.
• Price has returned to the support of the multi-month growing trend in the area of 1330. Closing the day below this mark will be a negative signal with a shift of the benchmark to 1250, that is, the lower limit of the three-month sideways.
• Locally, the situation may improve with a return above 1340, but a more important signal will be an exit from the descending channel with a breakdown of 1376.
Exterior background
The S&P 500 rose 0.74% yesterday. S&P 500 futures added 0.03% in the morning. ATP indices demonstrate a predominantly positive trend. Brent crude fell 0.7% to $81.7 a barrel.
Level Resistances: 1340 / 1359 / 1376 / 1400
Support levels: 1330 / 1314 / 1300
Long term picture
• From record levels, the price lost 30%. Against the background of the news about the introduction of US blocking sanctions against the company and its controlling shareholder, the upward trend that had been going on since 2014 was broken.
• The company was previously distinguished by stable quarterly dividends and high dividend yield.
• The minimums of 2022 were set in October, a significant increase was observed from the level. The price is above the 200-day moving average, which generally indicates a rising trend. BKS analysts consider a fair price of 2100 rubles.
Also read: Detailed description of all technical indicators
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