Today, October 5, 2020, a trading signal was generated for the shares of Gazprom (GAZP). On the daily chart on October 5, a double divergence formed, a divergence between the histogram of the OsMA indicator and the price (indicated by black lines). This discrepancy indicates the weakness of sellers and the growing strength of buyers. The price is testing the 166 mark, which is the 50 moving average on the monthly timeframe. This moving average may turn out to be a good support level from which the price of Gazprom shares will resume its growth.
On the Better Volumes indicator (with parameter 12 for the daily timeframe), the maximum relative volume was formed on September 30 (black candlestick). On the Price Deviation indicator (with parameter 50), we see a value of –6%, which Price Deviation indicates a favorable price for long positions.
Of course, it is worth considering the fundamental analysis that the fall in Gazprom shares is largely due to the global crisis and the fall in demand for energy, as well as possible sanctions in connection with the poisoning of Alexei Navalny.
Therefore, you can consider a speculative and investor plan. I am more of a trader, so I prefer to set a stop loss equal to two maximum ATR (35), which in this case for Gazprom (GAZP) shares will be 150. Therefore, the plan for trading the security is as follows – buy at current prices (about 169.5) with setting take at 250 and stop loss at 150. The ratio of possible profit to risk is 4 to 1. Do not forget to follow the rules of risk management!
Investors should consider buying stocks without leverage and stop loss. In addition to its great potential for growth, Gazprom constantly pays dividends, which in 2020 amounted to 16.61 (in Russian rubles) per share, or about 9% per annum.