timwest

PBR Base Formation with Upside Target Zone

BATS:PBR   Petroleo Brasileiro Petrobras SA
1025 27 4
Please fix the label as "LONG" instead of "NEUTRAL". Thank you.

PBR             has had a long bear market this year, falling from over $32 to under $18 along with a massive slide in the Brazilian stock market. PBR             is a major element of the Brazilian stock market.

The sellers have knocked down the price of PBR             to bargain-basement levels, but it has been like a falling safe.

What has happened to the shares over the past three months is a base-formation has formed. Although we are at the top end of that base formation, the key is that the base formation seems solid. The downtrend was violated (see the downtrend channel ) and the base has been formed (notice the lower volume , on average, in the down days) and now we can project up quite a ways for a rally.

Be prepared for some volatility as the stock can move 10% in the course of three days. Keep position size down. I will build into a position over a period of days and will leave stock to buy in 5% corrections.

Tim West, 5:00PM EST, Monday, July 30, 2012
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
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Very impressive.
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Amazing call. Where is your bulls eye for this one? :)
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Thanks :-) I just clicked on the "submit to bullseye" button
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Is this still looking good for a target hit Mr West?
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So far, so good. Did you see I put a short sale on XOM late last week? If you have that on as as short against this PBR as a long, then you will have a better position overall. If you have never done a "pairs trade" before, then research it and follow it and learn all about it. It is a great way to remove market-risk, but you add on company-specific risk of course.
All the best, Tim
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