My name is Andrei, and I’ve been navigating the capital markets as an investor since 2007. This article dives into the refined Elliott Wave theory and its perspective on companies within Romania’s energy sector: Hidroelectrica, Rompetrol Rafinare, or Conpet. This read is tailor-made for you!

Let’s start with the “elephant in the room,” so to speak!

SPEEH Hidroelectrica SA stock (BVB: H2O)

Hidroelectrica quote can be found on the Bucharest Stock Exchange (ISIN: RO4Q0Z5RO1B6)

However, although the market flooded with offers for other shares as a result of the return of funds, and although it would be the third largest company listed in 2023, according to the publication Ziarul Financiar: names such as Goldman Sachs, Black Rock, and Singapore Suveran Found investments subscribed at preferential prices according to the profile of those entities, the price disappointed.

Chart analysis on Hidroelectrica stock (BVB: H2O)

In the short term, the price has built a repeating pattern, “Running Flat, ABC,” colored in orange; sub-wave C has reached the minimum level for this pattern to be viable, and any buying becomes dangerous from this point. This wave is part of a higher degree ABC colored in green (a zig-zag structure), and the target of this action is below the 107 level.

Rompetrol Rafinate stock (BVB: RRC)

The stock quote can be found on the Bucharest Stock Exchange (ISIN: ROPTRMACNOR5)

This stock is in a shadow cone, as are shares of many other energy companies. The business environment is dominated by the increase in interest rates and the volatility of the fuel market, which affect profit margins and the entire dynamics of a business. But this company recorded a good result in 2022, entering profit.

Chart analysis on Rompetrol Rafinate stock (BVB: RRC)

This stock has been in a very generous range since 2013, and it doesn’t look like that will change anytime soon. It may not seem like it, but it is among the most stable actions, with the mention that this range, which I was talking about previously, can benefit from the “Dollar Cost Averaging” strategy.

The price is developing the orange wave. Maybe the price will go up a little more to 0.09, but it is dangerous to enter now on this share because it has to build the fall – the wave (b) colored in black, a decrease below the level of 0.0325.

After that, another climb above 0.0986, but the target here will depend on how deep wave (b) goes down with black, so it’s not a nailed-down target. The rest of the targets are hypothetical, starting from wave (b) with green and going up in grade.

Therefore, the targets need adjustments as the price develops in the two phases that follow, but possibly the most significant wave on the chart, wave C, colored in blue, will reach below the level of 0.0312 in the year 2031.

Conpet stock (BVB: COTE)

The stock quote can be found on the Bucharest Stock Exchange (ISIN: ROCOTEACNOR7)

This company was excellent some time ago, but the 143 lei drops and the disappointments make it unattractive.

Given that investors turned to companies in the field of green energy, sometimes, but even in the declining market, there are possibilities to register a profit, even if the transactions have to be closed on a shorter time horizon, after 1-2 years.

Conpet chart analysis

The company’s stock will complete a Flat wave, either a Running or Expanded Flat wave, colored blue. Now, the price is in the last wave of the structure—wave C, up to a maximum of 80.6.

And once the level of 70 breaks, the price could reach 60.4 level.

But it is not necessarily necessary to exceed it because wave b, in blue, has crossed the value of 80.2—the high of a, in blue—so a good target can be around 65.2.

Even if it drops below 60.4, don’t panic. The price will be back in speed, maybe not necessarily at the current levels, depending on where wave b will stop, with blue.

However, in the medium term, the price must fall again after wave c is complete, wave C in green being only an intermediate stage of the ABC structure in orange.

Disclaimer

This article isn’t trading advice, and any financial loss associated with it is solely your responsibility.

However, a more cautious investment approach can generate stability and profit in the long run.

Refined Elliott Wave patterns are hard to identify, and there is always room for error, and I don’t recommend using them especially if you are a begginner in investing. Always seek professional financial advice when investing. Thank you!