Petrobras is Near a Key Support Area

Published on Thursday, 14 February 2013 07:20 Written by TradersHuddle Wire

New York, February 14th (TradersHuddle.com) - Shares of Petroleo Brasileiro S.A. (NYSE:PBR) are trading very close to calculated support at $15.74 with price action closing at just $16.15 and placing the stock near levels where traders will start paying attention.

Petrobras' stock range is defined by its calculated support defined at $15.74 and by the resistance level at $20.19, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Petrobras' price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $20.19 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the 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.