ENI, more than Saipem and SNAM, could push the Oil & Gas sector upwards
In the last 3 years, since the outbreak of Russia’s invasion of Ukraine, the energy sector has outperformed the Ftse Mib All-Share index due to sanctions. Just look at the comparison, shown in the following figure, between the FTSE Italia All-Share Energy index and the Ftse Mib All-Share to realize this. In particular, if the general index gained just over 8%, the sectoral index had a return of 25%. In the last month, however, the balance of power has reversed. At this point abandon the energy sector altogether? Or choose the best stocks in the sector? Which shares do you prefer in the Oil&Gas sector between ENI, Saipem and SNAM?
Performance of the Ftse Mib All-Share (blue line) and of the FTSE Italia All-Share Energy (blue line)
Which shares do you prefer in the Oil&Gas sector between ENI, Saipem and SNAM? The indications of the graphic analysis
From the following graph it is evident that in the period between 21 September (when the market made a minimum) and the closing of 3 February Saipem shares (+133%) outperformed both ENI (+22%) and SNAM (0.00%).
On the other hand, the Saipem share came from a multi-year decline which had led to a negative performance of more than 95%. Will this strength of the title continue or will there be surprises?
Comparison, assuming the opening of 21 September 2022 as normalization, between Saipem (red and green bars), ENI (green and gray bars) and SNAM (blue and gray bars)
ENI
The title ENI (MIL:ENI) closed the session of 3 February at €13.844, up 0.68% on the previous session.
Averages crossed downwards on the ENI share – projectionsdiborsa.it
The current decline could go as far as the most probable target in the €12.7 area. If, then, this support were to give way, then the quotations could head towards the lows of September in the €11 area.
The bulls could regain control of the trend in case of a daily close above €13.848.
Saipem
The stock title Saipem (MIL:SPM) closed the February 3 session up 1.62% on the previous session at €1.382.
Averages firmly crossed upwards on the Saipem share – depositidiborsa.it
The current trend is up and its duration is such that it hasn’t been seen on the stock since 2015. At the moment, therefore, there are no problems in sight. Even the RSI is not overbought yet, so the rally could continue for much longer.
SNAM
The title SNAM (MIL:SRG) closed the February 3 session at €4.714, up 0.17% on the previous session.
Averages crossed downwards on the SNAM share – projectionsdiborsa.it
Very uncertain situation on the title that sees the averages crossed downwards. However, they are so close that they could quickly reverse to the upside. In this case a strong one confirmation of the reversal would come from a daily closing above €5.
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