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CaixaBank, the most resilient stock in a falling financial sector

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Caixabank continues to be one of the securities that has been left the least since the falls in mid-August that have hit the market and stands out with its annual advances among the best of the Ibex. However, the outlook and uncertainty have taken over the market, with winds of abrupt rate hikes and winds of recession blowing everywhere, seasoned by the evidence of the Russian gas cut.

If we talk about recommendations, the last one for the value comes from JPMorgan, which leaves its recommendation on the value neutral and leaves a narrow potential for the entity, despite slightly improving its target price to 3.10 euros from the 3.05 above. That margin is only slightly above 3%.

A perfect storm for cyclicals and especially for a banking sector where CaixaBank is among the strongest. It barely maintains its level above the 3 euros per share that it recovered at the beginning of this September, although it is still far from the maximum of the year, with a separation of 21%. So far this year, CaixaBank is placed with profits that exceed 30%

CaixaBank technical analysis of the value
CaixaBank technical analysis of the value

In addition, we have learned that last week it bought 8.7 million own shares worth 25.78 million euros, within the framework of the repurchase of company shares that serves as support for shareholder remuneration. Since the program began last May, more than 386 million shares have been repurchased for an amount of 1,214 million, which exceeds 67.5% of the maximum amount dedicated to this acquisition of shares on the market, which reaches 1.8 billion.

CaixaBank “struggles to recover short-term positions based on the growing guideline that works as the lower contracting band of a broad growing channeling process. In this sense, we must monitor the maintenance of the last low that the price recently left us, at a height of €2.636 per share, whose perforation would enable an extension of the downward movement until the next support projected from €2.332 per share. ”, tells us the financial markets analyst for investment strategies, José Antonio González.

In addition, he considers that the value “in the short term, the bullish rebound recently registered stops in the vicinity of the 50% Fibonacci of the last downward impulse, so, for the moment, its impact is reduced, which continues to maintain the threatens the viability of the growing fund guideline”.

CaixaBank in weekly chart (Left) and daily chart (Right) with average amplitude Range in percentage, MACD oscillator and trading volume

As far as the technical indicators elaborated by Estrategias de Inversión are concerned, we see that the value moves with a great note, improved in bullish mode by no less than two and a half points in its last review. In this way, its total score is 8.5 out of 10. In negative, the volume moves in the medium term, which is decreasing, and the volatility increases in the long term.

The medium and long-term trend is upward for CaixaBank, to which is added the positive total fast and slow moment, without forgetting either the volume of business in the long term, which is growing, and the volatility that is decreasing in the medium term for the worth.

Last Monday, the market strategist Ramón Bermejo indicated that CaixaBank “could cover the gap of around 2,895 / 2,890 euros, this would be a drop of 1.97% from the current price.”

Regarding the value, in statements to Investing Strategies, GPM analyst Javier Alfayate highlights that CaixaBank is one of the Spanish banks that are saved in the banking sector, which is bearish and weak. He also considers that it is important that it does not lose this week’s minimum, at 2.84 euros per share if we already have the value in the portfolio, although he considers that it is not the right time, the current one, to enter the value.


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