Ence’s shares were up 4% this morning and led the Ibex 35, leaving the balance of falls so far this year for the company at 34%. The value is one of the worst of the Ibex in the year, a trend that has worsened since the government pact was known between the PSOE and Podemos, which could lead to the closure of the plant in Pontevedra, although today comes good news from the technical point of view,
Specifically, the action has broken the downward trend defined by the fall in November and “has reopened the scenario to look for areas of 4.1 euros, above which would confirm a greater ground,” says Eduardo Faus, technical analyst at Renta 4 Banco. In this movement there would be no clear resistance to around 5-5.4 euros.
In the event that the upward movement of the price turns around, the level to watch as support would be 3.33 euros, although below and as the most important reference, the expert Renta 4 Bank points to 3.04 and 3.12 euros. In addition, explains Faus, trading indicators are giving purchase for the next sessions. so he recommends ‘buy short term’ with stop protection at 3.04 euros.
With today’s movement, Ence’s appearance improves somewhat in the final straight of a very complicated year for the company, which drags the uncertainty of what may happen to its plant in Pontevedra, whose first resolution is expected for the first quarter of next year. There may be different scenarios that sow uncertainty in the outlook, from closing the factory in the short term to extending the extension for 60 more years.
The action has also been affected by the downward trend in cellulose prices, although some analysts, such as those in Sabadell, believe that a recovery in prices could be seen next year.
As if that weren’t enough, this bad evolution in the stock market has turned Ence into a habitual objective of the bearish investors. Specifically, the last fund to position itself in this way was Voleon Capital Management, which reported 1.1% of capital in short positions. The biggest bearish investor is Ahl Partners, which has 1.38% in short, while BlackRock reaches 0.9% and Marshall Wace 0.87%.