Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) gained 0.85% in yesterday’s session, going up from its prior closing price of $9.98 to $10.07, and has now recorded rally in 3 consecutive sessions. Many in the market will be closely watching whether this winning streak is sustainable or take a temporary pause for the next couple of trading sessions. The stock price went upward in 8 of the last 10 days and has generated 14.51% during the last two weeks. Trading activity decreased by -1.94 million shares, and in total, 11.83 M shares exchanged hands for about $119.03 million. It should be noted that increasing price and decreasing volume show lack of interest and this is a warning that something has fundamentally changed.
Inside PBR’s Recent Trend
Petroleo Brasileiro S.A. – Petrobras (PBR) lies in the upper part of a wide and strong rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $10.28 will firstly indicate a stronger raising rate. Short-term traders are predicted to see a rally of 23.48% over the course of a quarter and, with 90% chance the price will be floating in the range of $11.24 and $12.69 in this timeframe.
Petroleo Brasileiro S.A. – Petrobras Technical Signals
PBR has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $9.98 and $9.09. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Friday September 08, 2017, which calls for additional surge until the stock forms a new pivot point high. There was a decrease in volume but the price rose. This is usually not interpreted as a good sign as traders widely believe falling volume should see declining stock. Investors should be watching the price action like a hawk in the coming sessions.
Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) Support And Resistance Levels
In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $8.98 and $8.69. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $10.12.
It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Petroleo Brasileiro SA- Petrobras approaches the first support point just current price at $8.98. In case of a break, the next support we will see from accumulated volume is going to be at $8.69 and $8.44. Accumulated volume is going to prevent the price from rising further at $10.12 and this action will lead the price to take a temporary pause or stay muted for a few days.
Petroleo Brasileiro S.A. – Petrobras (PBR) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.22 between high and low, or 2.16%. The average volatility for the past week stood at 2.34%.