Deoleo is one of the first surprises, along with renewables and Repsol in the Continuous Market. in fact, the exponential effect that the war is having on raw materials is at the base of everything. The Russian invasion of Ukraine has impacted the world’s leading producer of sunflower oil and, in addition to raising the price with very sharp rises, it jeopardizes future harvests and therefore its world export. And also especially in Spain where, if Russian oil does not reach 5%, andin the case of sunflower oil, imports are 60%.
This effect has led to high purchases by consumers of this type of oil in supermarkets, so that some of them have decided to restrict, with a maximum number, the purchase of bottles, which has led to occasional shortages of the product. A vicious circle that has caused the price to rise and even that of olive oil and its demand.
This is where Deoleo comes into play, the world’s leading producer of olive oil, but also, on a smaller scale, of olive oil. Thus, its journey in the market continues to be more than high. Specifically, in a stock chart we see that this powerful 58% advances with 6 rising sessions of the last 7 for the value, with a 36% upward run in the last 20 days and an annual revaluation that places it second in the Continuous Market after Berkeley with increases of 44.7%.
The truth is that from the OCU highlights that the olive oil that is being reduced is from the last campaign on which there are no supply problems, but if purchases accumulate above the usual stock, as happened with toilet paper in the pandemic, there were shortages and price increases in oil.
An oil, sunflower oil, which is not only used in the particular case, but also in the agri-food industry for pastries, fried foods, preserves and many other products, that they would be doomed, if they had not alternatively stopped in just over a month.
The technical indicators prepared by Investment Strategies place Deoleo with an improvement of two points, in rebound mode for the stock. In total there are 3.5 total points out of 10 possible that can reach the value. Only in positive does the volume of business move in the medium term, which is increasing, and the amplitude range, which is decreasing in the long term, to which is added the medium-term trend, which is bullish.
On the other side stands the long-term downtrend, the total slow and fast momentum that is negative for the value, the turnover shown to be declining in the long run and the growing volatility that Deoleo shows in the medium term.
For GPM analyst Javier Alfayate Deoleo “is one of those stocks that seems to be going up, although I don’t like to buy stocks because of the news that comes out, because they may already be discounted. It is a title that takes a long time to film doses in narrow ranges, between 0.30, 0.40 and 0.50 euros per shareIn addition to being a small value that I am careful with, because later when we want to get out there may be problems, although only if it is a large position”.
It further highlights that “I would not be convinced, but I would have the stop at 0.308-0.309, because it can continue to rise and this can help us, but basically it is a lateral title with which it has to show that it can overcome a lot of resistance along the way. I don’t see it clearly, but if you have them bought, then keep with that indicated stop”.
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