Buy Signal on TotalEnergies (TTE-FR)

We had an Enter Long Strategic signal on October 5, 2021, triggered by our system on Total Energies, TTE-FR, the french integrated oil company.

Our system also triggered an Enter Long Tactical signal on September 13, 2021 that imply a likely bullish acceleration. Total Energies has a rather poor track record, with a Behavioral score of 1/10, therefore the bullish signal is to be considered as mainly Tactical.

Total Energies is a € 109 Bn market cap oil & gas company which operates through four segments: Exploration and Production, Gas, Renewables & Power, Refining & Chemicals and Marketing & Services. Exploration & Production encompasses the exploration and production activities. Gas, Renewables & Power comprises gas activities conducted downstream of the production process and concerns natural gas, liquefied natural gas (LNG) and liquefied petroleum gas (LPG), as well as power generation, gas and power trading and marketing. It also develops renewable energy activities (excluding biotechnologies) and the power storage. Energy efficiency activities are represented through a dedicated Innovation & Energy Efficiency division. Refining & Chemicals encompasses refining and petrochemical activities and Hutchinsons operations. It also includes oil Trading & Shipping activities. Marketing & Services includes worldwide supply and marketing activities in the oil products and services field.

The last two years have brought some issues to the forefront as oil prices went negative, refining volumes for products such as jet fuel have fallen, capital allocators consider ESG goals and many earlier investments in shale production have been written off.

The reopening of the economy led the WTI prices higher, and Total Energies 2021 net income is expected to exceed the 2019 level.

The stock offers a current dividend yield of 6.4%.

Short term catalyst : Rising WTI prices, dividend yield.

This signal looks consistent with the Major Bullish Trend in the European Oil & Gas sector. There is currently a high percentage of stocks in tactical signal (90%).