GAZP trade ideas
Fundamentally Mispriced Gazprom (MCX:GAZP) – PreliminaryCaution: Preliminary Research – not an investment advice
What yesterday looked like a good long, today looks like even better one after the security took a 5% hit today.
What we're looking at: Gazprom mispriced at the fundamental level, giving a chance to almost double – according to the research, one could anticipate an appreciation of anywhere between 82 and 106 per cent. The implied target price range is between RUB 230.51 and RUB 260.73.
Investment horizon: months
Distressed: no
Alternative strategy:
Buy September's call option on Gazprom futures at 20000 (I'd go for more, but there aren't any), if you can find a counterparty.
Wish you x's, fam
GAZPGAZP chart is creating head & shoulders pattern on 1W chart. Looking for possible future long entries.
MACRO VIEW: GAZPROM MEAN REVERTION TRADINGSince about 2013 Gazprom trades laterally in relation to 1-year mean, giving abundant opportunity to take mean revertion trades.
Mean revertion trade is when price goes from either 1st standard deviation from the mean to the mean itself
On the chart I have pointed out such opportunities in the past (blue arrow is approximate entry towards the mean, highlighted in red)
Currently Gazprom sits at the 1-year mean - so traders can pick a mean revertion next time it trades to either higher or lower 1st standard deviation!
