Petrobras Uncovered: A Dividend Gem with Potential?

Mar 11

Petrobras' ON N2 shares from Brazil are particularly interesting, notably due to their high dividend yield. As the largest oil producer in Brazil and one of the biggest in South America, this stock holds significant importance over the coming years. It has experienced a strong rise, with our Wave (2) starting at 2.2 Brazilian Reals. Since then, it has risen and completed Wave (3) at the 227.2% extension level. Now, we should be entering Wave (4) and ideally not fall below the level of 19 Brazilian Reals. For Wave (4), we expect a retracement level between 38,2% and 50%. Given that we're looking at the weekly chart, this represents a very long-term scenario. We'll definitely keep you updated and may provide short-term entry opportunities as they arise. In the coming months, we expect to develop Wave B and finally Wave C. After that, as previously mentioned, holding this stock long-term could be very beneficial due to the remarkably high and attractive dividend yield.

Apr 8

Note

For Petrobras, we're taking a closer look since our last analysis has indicated that we've likely completed Wave A. On the 4-hour chart, we've clearly seen the gap close, and in our opinion, we've now constructed Wave ((a)) of the overarching Wave B. We believe we're dealing with a zigzag correction both subordinately and in the overarching structure. Therefore, we anticipate Wave ((b)) to drop between 37.57 and 36.68 BRL, followed by a rise to the 61.8 and 78.6 levels for Wave B, and then a five-wave correction down to the limit order at 28.31 BRL. This remains our current scenario. Should we fall significantly below Wave A, we might be dealing with a flat correction. However, this remains to be seen. For now, the zigzag movement is our primary scenario. We will update you and send out a limit order as soon as this takes on more shape.