Is Petrobras Closing in to Resistance?

Published on Tuesday, 25 December 2012 08:36 Written by TradersHuddle Wire

New York, December 25th (TradersHuddle.com) - Shares of Petroleo Brasileiro S.A. (NYSE:PBR) are trading very close to calculated resistance at $20.63. The stock ended the trading session at just $19.79, which is near levels that make it difficult to buy or start a position.

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.

Petrobras' stock range is defined by its calculated support defined at $17.82 and by the resistance level at $20.63; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Petrobras. However, as the stock pulls back towards $17.82 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $20.63 then traders will get an opportunity to enter the stock as it moves to a higher range.