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Petrobras Attempts a Breakout

Long
NYSE:PBR   PETROLEO BRASILEIRO SA PETROBR
Emerging markets have mostly struggled lately as the U.S. dollar climbed. That may have created an opportunity in Brazilian energy driller Petrobras.

Unlike other oil giants like Exxon Mobil and Chevron , PBR has barely moved in the last month as crude oil jumped. However, it closed above its 50-day simple moving average ( SMA ) on Friday and is continuing to fight higher today.

The next pattern is the downward-sloping trendline along the peaks of July and August, which prices are also trying to break.

Third, consider the area where PBR has bounced. It’s not only near the “nice round number” of $10, but is also close to the 200-day SMA . That kind of support from below could also help drive a potential breakout through the falling trendline.

Finally, the shorter-term trend is potentially bullish after the 8-day exponential moving average ( EMA ) crossed above the 21-day EMA on Friday.

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