Russian stocks can consolidate on oil volatility, COVID-19 hopes
MOSCOW, Apr 20 (PRIME) -- The Russian stock market will likely open with marginal changes on Monday because continuing oil market volatility can be offset by good coronavirus news from the U.S., analysts said.
"From the point of view of technical analysis, a period of consolidation of the RTS Index is possible (the margins of the consolidation range have not been formed, the zone of 1,000Ц1,030 can be seen as the nearest support)," investment company OlmaТs senior analyst Anton Startsev said.
"High volatility on the energy market can hurt activity of buyers on the Russian stock market."
Sergei Drozdov, analyst at investment company Finam, said that Brent quotations fell by 0.9% on April 17 to U.S. $28.25, remaining under pressure of low demand.†
On Monday morning, Brent fell 2.60% to $27.35 per barrel as of 9:07 a.m., Moscow time.
The U.S. markets closed higher on April 17 on reports about a gradual relaunch of the economy and on a statement by Gilead Sciences that investigational pharmaceutical Remdesivir could be the most effective in treatment of COVID-19, Drozdov said.
Drozdov set the local support level of the MOEX Russia Index at 2,470 and 2,500 and resistance at 2,550 and 2,610. The RTS local support levels are 1,060 and 1,045 and resistance 1,090 and 1,145.†