Lukoil Stock: Possible Long Term Reversal
Anatoly Grigoryev | Apr 01, 2017 02:38PM ET
NK Lukoil (LON:LKOH) 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 below.
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.
h3 Support of the parabolic curve/h3The 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.
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