Is Petrobras Oversold?

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.



Related Partner Headlines

    JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

    TradersHuddle Search

    Stock Search:


    Site Search:

    Loading

    Technical Scans

    Recent Trading Ideas

    Latest Partner Headlines

    Stock Market

    Loading
    Chart
    o Dow Jones 17,826.30 ▼279.47 (-1.54%)
    o S&P 500 2,081.18 ▼23.81 (-1.13%)
    o NASDAQ 4,931.81 ▼75.98 (-1.52%)
    INDEXDJX:.DJI

    Dow Jones

    Company ID [INDEXDJX:.DJI] Last trade:17,826.30 Trade time:4:35PM EDT Value change:▼279.47 (-1.54%)
    INDEXSP:.INX

    S&P 500

    Company ID [INDEXSP:.INX] Last trade:2,081.18 Trade time:4:35PM EDT Value change:▼23.81 (-1.13%)
    INDEXNASDAQ:.IXIC

    NASDAQ

    Company ID [INDEXNASDAQ:.IXIC] Last trade:4,931.81 Trade time:5:15PM EDT Value change:▼75.98 (-1.52%)

    In The Wires

    Copyright © 2013 TradersHuddle.com. All Rights Reserved.