Friday, June 9, 2023

Repsol moves away from its lows: support and resistance

Progress for the third day in a row for Repsol, which is trying to break away from its annual low, tracking the development of oil prices. Next support and resistance from a technical analysis point of view.

Repsol registered a revaluation of 0.97% first thing in the morning to reach 13.50 euros within the IBEX 35 which rose 0.35% at the same time. Price is looking to correct its tone as it heads into its third consecutive session, taking into account that its holdings have fallen a little over 7% so far this year, with a market capitalization of around 19,560 million euros. Is.

“Ripsol tries to move away from the annual minimum, settling at 13 euros due to the ongoing uproar for oil,” explains Diego Morin, an IG analyst. At the moment, from the point of view of technical analysis, “it has not lost the uptrend that started from the 2020 lows, with 12 EUR being the most important support in the short term.”

On the resistance side, IG experts highlight an “interesting return towards EUR 14”, but warn that “between EUR 15.50 (apparent resistance) and EUR 13.40 there are many disputes between bidders and askers”.

On the other hand, today the company is in the headlines after it was learned that together with Llog they have entered into an agreement with Shell and Equinor for the acquisition of the Blacktip mega-field in the Gulf of Mexico. Blacktip is one of the most important fields discovered in recent years, with 200 million net barrels of recoverable potential. With this deal, Repsol gets 11% to 50% of the deposit amount.

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“Positive impact,” says Alfonso Batalha, an analyst at Renta 4, in a note. “With the purchase of the Blacktip mega-field in the Gulf of Mexico, Repsol continues to forge ahead in the development of its upstream business in the US.”

Renta 4 reiterates its ‘overweight’ recommendation on Repsol with a target price of EUR 18.9 per share, which represents a 40% upside from its current price.

Nation World News Desk
Nation World News Desk
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