Petrobras Is Close to the 50 Day Moving Average

Published on Wednesday, 18 July 2012 07:56 Written by TradersHuddle Wire

New York, July 18th (TradersHuddle.com) - Petroleo Brasileiro S.A. (NYSE:PBR) closed the trading day at $19.58, near its 50 day moving average that is set at $19.50. Petrobras' price action is just above this important support level, providing a trading opportunity.

Petroleo Brasileiro S.A. (NYSE:PBR) also known as Petrobras, explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. The Company is based in Brazil and operates in South America and elsewhere around the world.

The peaks and troughs algorithm shows calculated support at $18.11 and calculated resistance at $20.07. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Petrobras should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.