Hello traders and investors! Let’s talk about ITUB here, as we can extract an important lesson from this stock. Maybe it is unfair to say it is an "out of the radar stock", as it is one of the most traded, but since it is not that popular, I'll label it as "out of the radar".
ITUB is an ADR, a Brazilian stock traded in the US (if you don’t know, I’m one of the many Brazilians here in Tradingview). It is important to look for opportunities elsewhere, because it is not only of tech stocks the market is made of!
Brazilian market is performing very well, and it is outperforming the US market. While the SPX is going up only 10% since the beginning of March, IBOV is going up 15%, and what’s more, ITUB is going up almost 40% since our group bought it!
What’s more, if you look at the weekly chart, ITUB is about to trigger a pivot point in the weekly chart, and this means the next target is around the $ 8.97, so it has more 40% to go from here.
Honestly, I believe it’ll reach there, in a few moths, but we must see a pullback in the daily chart first. The original ITUB chart (ITUB4) is having a hard time near the resistance in the daily chart:
But our ITUB already defeated the resistance, so, this is our stop-gain point from now on!
If it drops again to the 21 ema, I think it’ll be just an opportunity to buy, as ITUB has a great potential ahead, but I believe it'll take a few months to hit the $ 8.97 again. Anything around $ 5.70 is another buy for us. If you liked this analysis, remember to follow me to keep in touch with my daily updates, and support this idea if it helped you!
@Shanlys, Thank you, Shanlys! I appreciate the trust ;)
Have a good day!
franz_william
⋅
Thanks for the analysis, @Nathan_Black - always great. A question though: why are you saying it'll reach $8.97? The way I see it there's a strong resistance at $7.95 - what makes you so sure it will break through that? Trying to learn. :) Thanks!
Nathan_Black
⋅
@franz_william, Thanks, Franz! Yes, the $ 7.95 is a resistance, and probably ITUB will feel it when it reaches there, but I don't see it as a target for a pivot in the weekly chart. The pre-covid high is a more relevant price level in my view. We'll see!
Trade well, my friend!
franz_william
⋅
@Nathan_Black, Thank you very much for explaining your rationale, much appreciated!
vanessadp
⋅
Thank you
Nathan_Black
⋅
@vanessadp, You are welcome, Vanessa! I always appreciate your support!
I wish you well, my friend!
MAKrisp
⋅
Awesome! Can you share the color scheme for your chart? I'm digging the easy visibility! Thank you!