Solaria: preferred by GVC Gaesco until consolidating 17 euros

Solaria is clear: it is not about how you start but how you finish. And the minirally that the Ibex is experiencing with advances of more than 3.3% above 8,500 points so far this year has not been the turn of the renewable platform company.

From Singular Bank, its head of Variable Income analysis considers that “the strong correction of August/September grounded in the area of €14.00, which is its key support in the long-term structure. We assume that from that level it has started an uptrend with a first target at €20.00 and potentially at the highs of the summer around €24.00. In the short term, it has entered a consolidation phase in the 16.50-18.00 band, which we understand is a pause within the bullish process. In an eventual entry into these levels, a stop could be placed at half the position at 16.00 and the other half below the key support of 14.00”.

And in the Letter to the Three Wise Men, Solaria is included, for GVC Gaesco, as one of the favorites together with Enagas in the energy sector for the current financial year 2023. They consider from the firm that “it presents strong growth in Ebitda and net profit , as well as great potential due to the growing interest in indigenous energy.”

Still, not everyone agrees. From Bestinver, they are committed to maintaining the value while lowering its potential journey to 18.15 euros per share and there are two in particular, Citi and also Barclays, the firms that choose to recommend selling the value. Their respective target prices even present negative potential for the value: 14.50 euros per share and 16.40 euros.

In its price chart we see that the value has not changed so far this year, with an advance of almost 2% in the last 20 trading sessions, without losing, yes, in what we have been trading in 2023, the level of the 17 euros per share. Let us remember that in 2022 Solaria also remained in a draw, the only value of the Ibex that did not mark changes.

Solaria “violates the upper side of the medium-term bearish channel in black and describes a sequence of ascending minimums and maximums. A new bullish signal would be to overcome the resistance level of 17.950 euros, since it would resume said sequence in favor of recoveries. The next relevant resistance area is around 19,660 / 18,740 euros, together with the 200-period simple moving average The supports are located at: (1) the medium-term uptrend line in fuchsia, (2) the support area 16,430 / 16,280 euros and (3) relevant support at the OCT 2022 lows between 14,015 / 14,720 euros”, as indicated by the technical analyst of Investment Strategies, Néstor Borrás

Regarding the technical trend indicators of Fuerza Premium that Estrategias de Inversión prepares, we highlight that it remains weak with a situation of very weak strength in the long term and strong in the medium term. In operations, they advise staying on the sidelines with the risk of a false resistance break for the value.

The market strategist Ramón Bermejo pointed out on the 30th that, Solaria, “In the daily series, as a positive symptom we have fallen with a decrease in volume, except in the session on the 28th of DEC, where we have had a hammer pattern. After validating the hammer pattern exceeding its maximum at 17.19 euros with increased volume, therefore, we are exposed to describing new maximums, above 17.38 euros. We remain above the second medium-term uptrend line. We are waiting for the market to come out of this sideways movement and have a new upward trend movement and we can continue to move towards the resistance zone of around 18.74 / 19.66 euros per share”.

Samuel Edwards
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