Published on Tuesday, 02 October 2012 09:00 Written by TradersHuddle Wire

New York, October 2nd (TradersHuddle.com) - Petroleo Brasileiro S.A. (NYSE:PBR) closed the trading session at $23.08, near its 200 day moving average set at $23.88. Petrobras' stock action is below this level, which makes the stock difficult to be bought, as it will face resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $22.67 and resistance at $24.83. Traders should closely monitor these levels, as they provide great reference points for the latest price action in Petrobras.

If traders want to establish a position on Petrobras, given that resistance could materialize as the stock approaches its 200 day moving average, a trade might materialize as the stock manages to break this important level. After the breakout, the 200 day moving average could be used as support going forward. However, until the break materializes, traders need to exercise patience.