I've been wating for this correction for while, ibov has been overbought for at least 8 days. In those same last 8 days, following a trend of USA markets, ibov got caught in a range of 2%, which made trade on it very hard. But i think we are about to see a correction that will create a great opportunity to go long again. Targets are shown by the white lines (hope...
Correction at IBOV, with a estimated fall of 4.7% approximately giving a 50% retrace of previous rally.
Once again PBR has gone up way too far and too early. Despite REAL record apreciation this year the company still has more than US$100B of net debt and its main product ( Oil Brent ) is devaluing more and more.
This study show the possibility ( ceteris paribus ) of BMFBOVESPA:PETR4 loosing another 8.5% (going to R$7.53 level) in the next 16 days based in historical correlation with VALE5 in a one year time-frame. I'll play this doing a Long (VALE5) & Short (PETR4) and buying PETR4 puts.
PETR4 Potencial AB = CD pattern might be forming on the daily chart, giving us a 8:1 Reward to Risk ratio, which is nice. - Support @ 8.00 - 38.2% Fib Level - Black MA acting as Support
If NYMEX:CL1! opens neutral or bearish monday morning I´ll buy BMFBOVESPA:PETR4 PUTS (PETRQ90) aiming a two days correction for PETR4.