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Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) Growth Stock For A Winning Portfolio

Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) Growth Stock For A Winning Portfolio

Brazil’s Petrobras expects “good news” regarding its ambitious asset sale program

Petroleo Brasileiro
Ticker: NYSE:PBR
Price: $8.43

Brazil’s state-run oil company Petroleo Brasileiro SA said on Monday it had begun the non-binding phase for the sale of four thermoelectric plants, as part of a broader divestment strategy to shed assets and pay down debt.

Three of the plants are located in Camaçari, in the state of Bahia and run on fuel oil, while another, which runs on diesel or natural gas, is located in Canoas, in the state of Rio Grande do Sul, the company known as Petrobras said in a filing. 

Business Summary

Petroleo Brasileiro S.A.-Petrobras specializes in the oil, natural gas and energy industry.

The Company is engaged in prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks.

Its segments include Exploration and Production, which covers the activities of exploration, development and production of crude oil, natural gas liquid and natural gas;

Refining, Transportation and Marketing, which covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, and extraction and processing of shale;

Gas and Power, which is engaged in transportation and trading of natural gas produced in Brazil and imported natural gas;

Biofuels, which covers the activities of production of biodiesel and its co-products, and ethanol-related activities; Distribution, which includes the activities of its subsidiary Petrobras Distribuidora S.A., and Corporate.

Shayne Heffernan Trade Idea

“Our current price target of Petroleo Brasileiro will come in around $13.75 which will give the stock a price increase of +63.11%.”

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Sideways.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 8.38.

The projected upper bound is: 9.51.

The projected lower bound is: 7.44.

The projected closing price is: 8.47.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 61.6380. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 55.36. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 7 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -40. This is not a topping or bottoming area. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.

Rex Takasugi – TD Profile

PETROLEO BRASIL closed down -0.080 at 8.430. Volume was 60% below average (consolidating) and Bollinger Bands were 33% narrower than normal.

Open    High     Low     Close     Volume
8.280   8.530    8.270   8.430     13,821,433
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bearish
Moving Averages: 10-period     50-period      200-period
Close:           8.76          7.21           11.92
Volatility:      89            93             108
Volume:          29,600,212    30,694,886     25,119,752

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

PETROLEO BRASIL is currently 29.3% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods.

Our volume indicators reflect volume flowing into and out of PBR at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on PBR and have had this outlook for the last 19 periods.

We invite you to try out any MetaStock product (including Add-Ons) for 30 days. If you are not convinced that it helps you make more accurate, educated trading decisions, just return it to us within the 30 days for a refund of the purchase price. It’s that simple. This policy does not apply to subscriptions.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of the NYSE Stock Market.

Trading and investing carries a HIGH LEVEL OF RISK, you could lose some or all of your investment. Trading commodities or any other financial instrument may not be suitable for all traders. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. We accept no liability for any losses or damages you may incur—this means that you alone are responsible for your actions in any trading or investing activities.

Sources:
Petroleo Brasileiro Company Website
Thomson Reuters Metastock and Eikon financial tools

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