History, recent context and fundamental

Naturgy, previously called Gas Natural Fenosa is a Spanish company that operates in the electricity and gas sector. It is one of the three largest companies in this sector in Spain together with Endesa and Iberdrola.

The company has its origins in Catalonia, where it would be founded and would be dedicated at that time in lighting the Catalan capital. His name would be Catalan Society for Gas Lighting. In 1846 he would start trading on the Barcelona stock exchange, being one of the few private equity companies in Spain that has withstood so much over the years. In 1912, it would change its name to Catalana de Gas and ELectricidad.
It would not be until 1991 when it would take its most current name. It would happen when merging with Gas Madrid and its name would be Gas Natural. Since then, it will begin its international expansion as Enagás and Endesa. It would begin to distribute the gas and carry out gas pipelines in South American countries. In 2005, after an unprecedented surge in the stock market, it would try to opener Endesa but could not. After which opadad to Union Fenosa, already having a less adversary and being the box of competition almost null.
Naturgy currently operates in the main countries of Europe through subsidiaries. It has a great weight in the countries of South America and is carrying out numerous projects in North Africa and Oceania.

Both Gas Natural and Endesa, mentioned in their respective thread, enjoy enormous weight and great responsibility since the transmission lines and substations are controlled by these two groups mainly. The policy is on these two large companies for several years, where advantageous deals are secured against foreign countries and privileged information. This is why other groups such as Ciudadanos and Podemos have long claimed a deeper independence with politics. However, the only party that could change that would be Ciudadanos, which is liberal in nature. We can far from liberalizing the sector measures focuses on intervene further, nationalize it to put prices that end up sinking rivals and in which it could happen that there is only one company and in the long run the prices would be higher than being semi-intervened companies as now. It is well known that the solutions of Podemos at the economic level instead of curing the disease accentuate it . Here I present the data of fundamentals that I think are most important:

Of the fundamentals table it is observed that it has a behavior very similar to that of its great rivals such as Endesa and Enagas, with a stagnation of growth but still with notable benefits. However, the debt is three times higher than that of its rivals and its EBDITA in relation to it is quite tight. This could lead to problems with an ECB rate increase.

Technical analysis

In technical analysis, however, he paints much better than his rivals. You can see how the end of the triangulation that takes place since 2016 is falling and could develop a new momentum with the speed with which it did in that year (See 1 and 2). This would give him enough strength to try to take off to the maximum resistance that is at € 40. Although 10 years ago this value was overvalued and is that all the large listed companies were now with the strength they have and the results achieved year after year, this value could be feasible. The MACD indicator is quite convincing, expressing that the change of cycle to a more upward movement has not happened long ago. The elections this year, 2019, in this case will be key to the future of the action.



In the short term we see big differences with their rivals with a fairly bullish trend with several attempts to overcome the great resistance of € 25. And it is that it has formed what may seem to a bullish mini-channel that could lead to value to overcome it. However, there is also the possibility that it will fall and seek support around € 22, as happened at the end of the channel (1). The MACD indicator seems presumably that it will not but the possibility exists and therefore the strategy at this time would be to sell and wait for the technician to be clearer as there is a 15% potential drop . Due to its upward trend there will always be opportunities to enter key points as if that descent took place.