Embraer 
ERJ is in a strong uptrend which started in Feb 2024. From Feb 2025 volatility has increased, with more pronounced swings higher, followed by stronger corrections.
After the last upswing (topping 7 Jul 2025) and a following pullback we see clearly decreasing volatility, forming a volatility contraction pattern (VCP). The price created three higher lows and a clear resistance in the 61-62$ area. VCP is confirmed by decreasing volume on each pullback.
Last 3 sessions (from 24 Sept, the orange rectangle) we see a local consolidation with even lower volume - further contraction of volatility (and a sign that bigger move might be coming).
Trade
Entry: I will open a long position when price reaches 61.70$, ideally confirmed by strong volume lower timescales (h1 and h4)
Stoploss: below the local consolidation (58$)
Take-profit: based on the magnitude of the last impulse (46$ to 61$) the target is 81$.
RR: 5.2
ERJ is in a strong uptrend which started in Feb 2024. From Feb 2025 volatility has increased, with more pronounced swings higher, followed by stronger corrections. After the last upswing (topping 7 Jul 2025) and a following pullback we see clearly decreasing volatility, forming a volatility contraction pattern (VCP). The price created three higher lows and a clear resistance in the 61-62$ area. VCP is confirmed by decreasing volume on each pullback.
Last 3 sessions (from 24 Sept, the orange rectangle) we see a local consolidation with even lower volume - further contraction of volatility (and a sign that bigger move might be coming).
Trade
Entry: I will open a long position when price reaches 61.70$, ideally confirmed by strong volume lower timescales (h1 and h4)
Stoploss: below the local consolidation (58$)
Take-profit: based on the magnitude of the last impulse (46$ to 61$) the target is 81$.
RR: 5.2
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.