Is Petrobras Oversold?
Published on Wednesday, 13 February 2013 08:20 Written by TradersHuddle Wire
New York, February 13th (TradersHuddle.com) - Shares of Petroleo Brasileiro S.A. (NYSE:PBR) closed the session at $16.06 well below calculated support at $18.12. Price action placed the stock in oversold territory as investors and money managers moved out of their positions.
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 was trading in a well defined range with support at $18.12 and resistance at $20.19, prior to its decline. When the stock broke calculated support, it sparked the current down draft, which has shown how traders move out their positions in the stock.
From a technical perspective, the Petrobras stock is in severe pain, as the harsh sell-off could place a heavy burden on buyers, who as they look to get their money back, might generate a price dynamic where buyers will become sellers as the bounce materializes. It can be expected that previous support will become resistance, as a new range gets defined. The maximum move for the stock should be calculated to return to previous support at $18.12. Traders wanting to play an oversold bounce in Petrobras, by establishing a long position, would need to wait for evidence of buying at a specified area.
- AT&T And America Movil To Provide Deeper National Reach For Advanced Enterprise Services Across Latin America
- AT&T 4G LTE Available In Willimantic
- AT&T 4G LTE Available In Torrington
- AT&T And The University Of Kansas Team Up To Enhance Wireless Coverage On Lawrence Campus
- AT&T 4G LTE Available In Fargo
- AT&T 4G LTE Available In Amarillo
- Benefitfocus Announces Pricing of Initial Public Offering
- Trends of China Gear Industry 2013 Analysis & Reviewed in New Research Report at RnRMarketResearch.com
- Product Launch Formula 4.0 Bonuses Total $5000 at BrianHanson.com
- Datex Presents Motorola Solutions Webinar “Is It ‘Smart’ to Use Smartphones for the Enterprise?”
Related Partner Headlines