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Endesa, Naturgy and Enagás: three impeccable bullish manual channels


The ‘utilities’ sector remains exultant. Of course we sometimes attend small short-term corrections (reaction phases), but it can be said that he continues to enjoy great health. Many of its components are at all time highs.

Technical analysis

The large movements in the markets, except for specific relevant events that may momentarily affect a certain title, they always occur at sector level. In fact, everyone's weakness is known, for example, for banks, the car / automotive sector and the telecos sector in terms of medium and long-term equity in the Old Continent. What does not take away so that in the short term we can attend important rebounds, such as the one we have observed this week in many of the telecommunications companies, such as Telefonica.

But let's not fool ourselves, real money is made by taking a trend and sitting on it. Yes it is. And knowing how to endure the best that can be corrections against trends that occur in any long-term upward movement. Just as in a downtrend we need prices to bounce to keep falling, the same is happening within uptrends. Prices need corrections to keep going up. And the only sector that presents a very clear upward trend, or primary, is that of electricity and energy. Gross mode, this sector started upwards in 2012 and with his intermediate scares continues to rise. In fact, those that are not at all time highs (Iberdrola and Endesa) are close to achieving it (Enagás).

Next, we analyze the evolution of three of the ‘utilities’ of our market:


The electric one revalued from 2012 lows above 500%, which is said soon. And of course, in between, we have their corrections of a certain size, many of them between 20 and 30%. But these fit within the normal parameters, since they are neither more nor less than the typical reaction phases / proportional adjustments of the important previous rises. You know, action-reaction phase. That said, and in the shortest term, the price presents an impeccable bullish channel since March 2019. Bullish book channel, impeccable. And the basis of this, by definition support, passes at the present time for approx. 23 euros. The high part we have at this time for approx. 25.15-25.20 euros. In any case, remember that the current prices are maximum of all time.

Endesa daily chart since the end of 2018


It is in a market moment of the most interesting, or at least to the extent that it does not pierce the support it presents in the minimums of last summer: the 21.70 euros. What we have before us is an impeccable bullish channel (weekly) through which the title has been moving since summer 2016. And we already know that, by definition, at the base of a channel you buy. Not for sale. The oversold in this period presents extreme readings, which favors our scenario that around the current price levels the gas company should try to restructure again. Of course, it would be good if the support of 21.70 euros was not drilled under any circumstances.

Naturgy weekly chart since the end of 2014


It is quoted at 4% of historical highs. And above 25.41 euros, preferably in weekly candles, will be placed in free climb after a side of six years. Remind them that the price references we are giving are adjusted for dividends. Something that in the case at hand is of vital importance because this title is one of the most divided dividends. That said, we have to look at the bullish book channel through which the price is moving since September. The base of this passes at this time for approx. 22.80-23 euros (support) and as resistance we have the high part of it, at 25 euros.

Enagás daily chart since summer 2018

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