Hello traders! Today I would like to share with you a trade that I am about to embark on. As part of my investment approach, I have decided to risk 1% of my portfolio on an opportunity I have identified in ENAGAS, a stock that shows signs of reversal for a possible longer-term uptrend.
Approaching the Weekly Close
Just minutes before this week's close, I am...
Enagas is forming a H&S on the weekly with a breakout range at 13.5$
My strategy is to see a rebound to the breakout point (15.5$) to eventually drop 12% to the 13.5$ support area.
With a yearly dividend yield of 6.6%, it is at the current moment one of the bests in the Spanish stock exchange. Moreover, from the technical analysis perspective, we have a strong support level on the daily chart (19.47 from last candle) and on the weekly chart (17.71). We have in our HT 200 portfolio for the long term and so far we have +10.70% + dividends....
Due to the lack of incoming volume and the general sentiment in the markets, that is waiting until we can see the reopening of businesses and probably waiting also until the Q2 results, this stock will remain lateral with maybe a weak upside trend.
$ENG
Enagás already has institutions on the share registry. They own 32% of the company.
Undervalued. In a overvalued market.
Trading currently at a discount 32% off.
D/E 171.94 increasing over each Earnings
TTM is currently at 1.25Billion which shows undervaltion.
P/T €28.0
