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Ape
May 13, 2015 1:54 AM

PBR: 7 Year Bear Run Over? Long

Petroleo Brasileiro S.A.- PetrobrasNYSE

Description

How do you not like a stock that doubles in a little over a month? PBR killed it on their last earnings report and it has been on fire ever since (with the help of the energy market). Pull up a monthly chart on this stock and you can see their is a lot of momentum behind this move. I suspect this rally to last another 2-5 months at least. Expect a strong trending market to continue to form. I marked out the current main support trendline from the lows in march. Intermediate target right now I have set at the .387 retrace of $11 and .5 retrace of $13. I can easily see PBR rallying pass these targets as they reported higher YoY revenue, net income, and cashflow. Intermediate support is seen at 9.50-9.40, 9, and main support at 8.50. Expect momentum to continue as long as price remains above 8.50

Have a chart you want me to analyze? Comment below!
Comments
igilardi
Hi Ape, PBR beat the Street in big! What resistances do you see above in the near term?

I really value your comments.

Greetings!
Ape
Intermediate resistance can be seen at 10.50, 10.98, and 11.65. Look for these resistance levels to become support for a strong, move up.
igilardi
Ape, I see:

Fibo 0.382 (20.94 to 4.9) 11.03
SMA50 Weekly 11.32
SMA100 Weekly 12.48
EMA100 Weekly 12.64
Fibo 0.50 (20.94 to 4.9) 12.92

Greetings!
igilardi
Analysts are expecting the state-controlled company to earn 9 cents a share on revenue of $29.4 billion for the period, according to analysts surveyed by Thomson Reuters.
In the same quarter of last year, the company earned 68 cents per share on revenue of $34.51 billion.

The result is going to be lower in a YoY basis, what price reaction do you expect?

Greetings!
Ape
Bar is set really low for PBR which presents the company with an excellent opportunity to outperform the estimates as they have the last four quarters. Also, analysts are expecting just .61 eps for the entire year of 2015, down from 1.67. Any marginal beat will cause analysts to up their targets for 2015.

I expect a beat by PBR and a positive reaction from the markets, if however there is a negative reaction to the earnings, I expect PBR to quickly recover. As long PBR to remain above 8.50 I am bullish PBR.
beteljuse
How about taking a shot at DGLY.
Ape
Will do.
Ape
Done.
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