If there's one stock that's generating a buying opportunity, it's undoubtedly the Spanish oil company Repsol. This is especially true given the boost it's receiving from the soaring price of oil, which is currently above the $80 per barrel mark . While this trend could potentially break at some point, as nothing lasts forever, least of all the gains in the stock market, Repsol's shares are among the most closely analyzed by renowned financial analysts.
There is certainly one clear trend on the Spanish stock exchange: Repsol is one of the few stocks showing very strong buying pressure. And of course, this pressure is higher than that of the other stocks that make up the Ibex 35, the benchmark index of Spanish equities. To such an extent that this publicly traded oil company has managed to break through significant resistance levels that had been in place since 2007. A potential breakout and sustained upward trend are among its main characteristics from a technical analysis perspective.
The share price could rise even further depending on how much the price of crude oil rises. This will undoubtedly be one of the most important factors in determining how Repsol's stock will perform in the financial markets from this point forward. It's true that Repsol has experienced a significant upward trend since trading around €13 per share. However, once it has broken through the resistance levels it faced, anything can happen, so you need to pay close attention to what's happening with this important stock.
Repsol: in the heat of oil
After the increase last March, the next one is expected in June, with another in Q4 2018 (a total of three 25 basis point increases in 2018). Following the recent surge in crude oil prices, the market is beginning to price in a fourth rate hike in 2018. This is a current factor that has supported the price of oil in recent weeks. However, the key question is whether this trend will continue, or if, on the contrary, there will be a trend reversal that could derail your investment strategies.
On the other hand, it's worth noting that the rise in fuel and oil prices has reached its highest level since 2014. Globally, crude oil prices continue to climb amid fears of a global supply shortage due to US sanctions on Iran and a potential reduction in Venezuelan production. This presents an opportunity to start making your savings grow right now.
A commodity on the rise
In any case, you can't forget that oil is one of the few financial assets that is clearly trending upward . And from this perspective, it encourages you to open positions in oil companies, such as Repsol. In this regard, Brent crude for July delivery closed this Wednesday on the London futures market at $79,81 per barrel, 0,27% higher than at the close of the previous session.
On the other hand, European crude oil saw a slight increase after it was revealed that US reserves rose by 5,8 million barrels last week, reaching 438,1 million, while experts had anticipated a drop of 1,7 million barrels. Given this scenario, it's not surprising that many small and medium-sized investors have decided to open positions in Repsol. The current situation encourages these decisions to be made in small and medium-sized investor forums. This comes at a time of great uncertainty in equity markets , a reality that is currently driving buying pressure on this company listed on the Ibex 35.
Low yield on peripheral bonds
If there's one major casualty in this scenario in our neighboring country, it's undoubtedly peripheral bonds. Not only those from Italy , but also from Spain, Greece, and even Portugal. It's no wonder, then, that these bonds have seen a significant drop in purchases in recent days. They simply don't inspire confidence among investors, who, in any case, are opting for German bonds as a symbol of security for making their savings grow from this point forward. It's important to remember that the 10-year German Bund is a safe haven for savers in times of great uncertainty, such as the one we're analyzing in this article.
Of course, in these days or weeks you will have no choice but to flee from peripheral bonds to preserve your capital with certain guarantees of success. Beyond other technical considerations and maybe even from a fundamental point of view. In this sense, you cannot forget that there is a lot of money that you can leave yourself on the way if you opt for this kind of investments in fixed income. It is preferable that you even approach equities with some caution since at the moment it is a much safer investment than this class of very specific bonds.
Undervaluing the banking sector
Within equities, there is a sector that is particularly sensitive to what is happening in Italy from a political point of view. And of course it is none other than the financial and banking sector since it is the most affected in a bearish environment by the stock markets. Not surprisingly, the interests of Spanish banks in Italy are very strong and it is not surprising that these days they have lost a lot of money in their positions. With a risk that falls may become more acute in the coming days. So that you are not immersed in undesirable scenarios for your personal interests, the best decision will be not to take positions in any bank. At least for now and until the first measures of the new Italian government are verified.
This may be the right time to rotate your securities portfolios. From the positions of banks to other listed ones that will exercise a more defensive strategy in bearish scenarios in the equity markets. Of course, it is the most effective alternative to navigate this scenario being integrated from equities. Without having to leave the financial markets for what may happen in Italy from now on.
Back to the usual products
Another solution so that you do not get any other surprises in the next comes from the possibility of subscribing to banking products of a lifetime. Of course, the gains will not be very important, far from it. But at least it will help you not to lose a single euro during these troublesome months from the perspective of stability in Italy. To the extent that it can become an investment called a bridge that will serve to save the money until the conditions of the financial markets stabilize. This can last a few weeks or on the contrary extend more in time.
In any case, it will be very difficult for you to exceed profitability levels above 1%. But with the satisfaction that you will spend these next vacations in a calm and uneventful way about what may happen to the always complicated world of money. Of course, there is little you can achieve from today with the application of this strategy in investment so peculiar and defensive at the same time. Do not forget it as a possible action to make your savings profitable from now on.
Tips not to die trying
So that you do not have any problems with the management of your money, nothing better than following a series of recommendations that can be very useful in the current circumstances. Among which are the following that we expose below. Because it can help you make profitable operations in the financial markets.
- Be much more cautious than in other periods of the year, where your decisions must be carried out with a greater dose of reflection.
- Not for being more conservative you have to choose the fixed income since this option in the investment can generate more risks than in the variable.
- It can be an excellent excuse to rest a little and in this way take advantage of the summer months to enjoy your favorite hobbies.
- This is not the time to take risks, both in terms of fixed and variable income and this should not be forgotten at this time.
- As always, it will also be a great opportunity for you to find authentic business opportunities that will undoubtedly emerge in these days. In some of the cases they are even a special strength and intensity.