What happens to Repsol's shares on the Stock Market?

<>Undoubtedly, the shareholders of the oil company Repsol are concerned about the current state of their shares, since they have verified that in a short time their valuation has decreased by more than 25%. Because in fact, Its price has gone in 2015 from trading around 19 euros, to around 11 euros today.. There are many euros that have been left on the road, but the most worrying thing if you are a shareholder at this moment is that the losses may be even more acute in the coming months.

Throughout 2015, the shares of the Spanish oil company have been among the most affected by the market, as a result of the fall in the prices of the main raw materials in international markets. La virulencia de su colapso ha sorprendido, no solo a sus accionistas, sino además a una buena parte de los analistas bursátiles, donde muchos de ellos inclusive los tenían integrados en su briefcase de valores más recomendados para los clientes.

Reasons for its fall on the stock market

Este procedimiento de forma clara bajista que la empresa viene desarrollando en los últimos meses no tiene un denominador común que lo explique, sino varios y de distinta índole. Deben ser analizados, no solo para establecer la strategy actual que debes emprender, estás posicionado en el valor, sino además para if it can constitute a clear purchase possibility for the new shareholders who wish to take advantage of the low prices at which their shares are currently trading.

1. Oil dependency: the evolution of its prices is closely linked to that of crude oil. And in this sense, it has almost always accompanied its price. This raw material has gone from trading 100 to 35 dollars a barrel, in a very short time. And how could it be otherwise, it has ended up affecting the national oil company. Not in vain, the entire sector has been heavily punished during this procedure, even with more aggressive corrections in other international companies that have lost the 50% in a few months. In the opinion of analysts, as long as there is no recovery in the price of crude, there will be no opportunity for some kind of rebound in Repspol's price. And that according to the latest information that the sector is generating, it does not seem that it will be its trend, at least in the short term.
2. Buy Talisman: the purchase of the Canadian oil company, now just a year ago, has excessively penalized the company's growth prospects. The reason is very clear, the operation was carried out with a price of oil around 100 dollars, while now it is worth much less, particularly 40, less than half that twelve months ago. As a result of the price set by the financial markets, the operation has not been profitable and investors are progressively moving away from the company in search of other business opportunities, mainly in other stock markets.
3. Downward trend: its technical scenario cannot be more bearish, mainly in the medium and long term. Since mid-2015 it developed a downward escalation that brought it to its current prices. This business procedure led to their actions. until the important support of 10 euros, where at the moment it seems that it has endured its fall. Regardless, if all market analysts agree on something, is that if you exceed these limits, your recovery will be very difficult to occur. What's more, they predict steeper depreciations that can carry up to 7 or 8 euros per share. But in any case, they will be conditioned by the evolution of the barrel of crude. Some market experts are more positive with the value and predict that its price can lead to prices around 14 euros, where one of its main resistances is.
4. Price decrease: Otra variable que tiene frente a este valor del sector petrolero es que los corredores e intermediarios financieros más importantes han bajado drásticamente su precio target. Going from an average of 20 euros to 14 euros per share. It would still have an upward path, but much more limited. Even though the really important thing is that none of them have extended their listing targets. With this perspective, not a few investment funds have removed the company from their securities portfolio, to the detriment of other companies that have the approval of the financial markets, and with greater opportunities for revaluation.

What can you do right now?

For a company as volatile as this, and whose short-term trend is so poorly established, few strategies can be carried out. The gains they can achieve are very large, but the losses are also. Hence the latent danger of taking positions, at least until the path that their prices are going to take is clear.

During the last trading sessions, your course in the domestic continuous market has possibly been very erratic. As soon as a 2% rises in a trading session, the next day it falls with the same intensity. In conclusion, there is an established trend. It is only suitable if you are a trader who wants to make your trades profitable in the same trading session, without looking at longer time frames.

And in general with an evolution lower than that developed by the national selective index. From this phase, there are other much more recommended options if you want to generate capital gains in the shortest term, and from all sectors. Only its high dividend yield can play as an asset to turn it into the most immediate appetite for your interests, and until your final scenario clears.

The Repsol share has clearly been one of the big losers of 2015, and over the next few months it will be necessary to check if they recover positions, or if, on the contrary, their prices follow the trend shown so far, and the sharp falls that have developed continue.

In any case, In the current stock market offer you will always find companies with a better technical aspect, which are even developing powerful bullish patterns in their prices.. Some of which are immersed in the unbeatable figure of free climbing. The most advisable thing to buy on the stock market, and that can lead to significant capital gains in the operations that you face in equities during the coming months.

Six keys to establishing your position

If you want to achieve a certain profitability with the shares of this company, you will have no choice but to import a series of tips, which will help you achieve your goals. Not without difficulties in all your performances, and fundamentally depending on the scenarios that arise from now on.

Another aspect that you must assess to carry out the operation successfully is the term of your investment. If it is going to be short-term, you can take advantage of possible cuts in their prices to try to get a few euros in each movement. If your perspectives, on the other hand, are for the medium or long term, the strategies will change remarkably. Not surprisingly, the most appropriate in these cases is to formalize the purchase of shares. when its long-term trend has changed from bearish to bullish.

Now cotiza bajo un channel lateral muy profundo, entre 11 y 12,50 euros, from which it is difficult for him to get out. The investment strategy, according to the main stock market analysts, would be based on buying shares if it breaks the resistance, and on the contrary, selling them quickly if in the end it is decided to leave the channel for its bearish part.

To help you channel your operations in the value, we offer you some simple tips about how your operation should be, but fundamentally in what variables you should look at to enter or exit the stock market through the shares of this company in the oil sector. With a view to configuring its portfolio of securities for 2016.

• If your stay is long, each year you will have a profitability close to 8% in dividends, which will help you enjoy a fixed income within the variable, and face certain personal expenses.
• In case you are tempted to access the value, you should go to the crude oil price charts, which in large part will be the one that in conclusion determines the evolution of its shares in the stock markets.
• You probably want to be positioned in a calm company, without excessive swings in their prices. In which case it will be more profitable to opt for other more defensive cut-off values that do not make you be all day pending your quote.
• To protect your savings you can incorporate it into your portfolio alongside other less aggressive listed companiesand lowers an amount of the operation not excessively high.
• It has a very strong support at 10 euros, so if you violate it, it will be better to get rid of your positions, and if it is not yet invested, the most reasonable thing is to wait for a better time to access the market.
• You have to consider the high level of indebtedness that this company has, and that will inevitably be a serious impediment for it to develop strong bullish movements that will take it to the highs that it marked in previous years.