Lukoil is a Russian oil company with shares traded on the Moscow Exchange. Stock prices are nominated in Russian rubles, instrument's symbol is MOEX:LKOH.
During the recent years the Lukoil stock had a pretty good uptrend, and even made an all-time high this January. But the things are turning south, with signals of a long term trend reversal. Look at the weekly chart.
Bearish divergence
The stock made new high, but the RSI indicator showed a lower high, which means we have a bearish divergence: a pretty strong signal of a trend reversal. The price is likely to go down during the next 3-5 years. Of course, some bounces are still possible.
Support of the parabolic curve
The price still has some strong support, at least to provide a bounce: the parabolic curve. Since 2010 the stock price always had a bottom at this line and then a new wave of the uptrend happened. So, be careful: don't sell when the price is at the curve.
Once the curve is broken, things can get ugly. But don't forget that this is a long term view, just to see "the big picture". Short term uptrends are always possible as the price can't go straight down forever.
During the recent years the Lukoil stock had a pretty good uptrend, and even made an all-time high this January. But the things are turning south, with signals of a long term trend reversal. Look at the weekly chart.
Bearish divergence
The stock made new high, but the RSI indicator showed a lower high, which means we have a bearish divergence: a pretty strong signal of a trend reversal. The price is likely to go down during the next 3-5 years. Of course, some bounces are still possible.
Support of the parabolic curve
The price still has some strong support, at least to provide a bounce: the parabolic curve. Since 2010 the stock price always had a bottom at this line and then a new wave of the uptrend happened. So, be careful: don't sell when the price is at the curve.
Once the curve is broken, things can get ugly. But don't forget that this is a long term view, just to see "the big picture". Short term uptrends are always possible as the price can't go straight down forever.
Comment:
Lukoil keeps crashing, but approaching the strong support level provided by the long term parabolic curve. So this stock's crash is likely to stop soon for a few months at least, and may even rise mid-term.
Comment:
So far so good. Bouncing off the parabolic curve as expected.