Centrais Electricas Brasileiras S.A.- Eletrobras (EBR)

EBR stock forecast: buy or sell

EBR stock outlook

  • Centrais Electricas Brasileiras S A Amer stock barely changed 0.16% to close at $6.45 on the stock market today.
  • The stock is configuring an uptrend pattern since late March, when it bottomed at $2.96. Up to date, shares made a 117.91% gain since the beginning of this rally
  • Centrais Elétricas Brasileiras S. A. - Eletrobras, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil.
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Please read:
The thoughts written in this post are personal and not recommendations for you to buy or sell stocks. The author of this paper does not know the individual circumstances of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for educative motives only

EBR stock chart overview

Should I buy Centrais Electricas Brasileiras S A Amer stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is EBR stock a buy?

Currently, Centrais Electricas Brasileiras S A Amer stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean EBR will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Centrais Electricas Brasileiras S A Amer stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies allow us to avoid rash decisions based on our sentiments or the buzz surrounding the market. When selling, as well as buying, detailed setups are very simple to use and are only applicable for selling shares you already own, not for shorting EBR stock

As a golden rule, you should not mantain an open trade that generates greater losses than those expected at the time of the buy. When to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Centrais Electricas Brasileiras S A Amer stock?

Currently, Centrais Electricas Brasileiras S A Amer stock doesn't match any of our preferred sell setups, so if you own Centrais Electricas Brasileiras S A Amer shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell Centrais Electricas Brasileiras S A Amer stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the previous month we couldn't find any rating for Centrais Electricas Brasileiras S A Amer

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Technical analysis

Since in late March, Centrais Electricas Brasileiras S A Amer has been printing an uptrend that by now marked a gorgeous 117.91%. The price line shows higher highs and higher lows, and along the way gave some buy points for those who wanted to trade in. Latest pullback was on June 26, when price bounced at $5.43. Like in all uptrends, price needs to rest and currently price is consolidating the gains in a range between $7.25 and $5.43

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Learn more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Technical analysts use supports and resistances as a way to spot price points in the stock price action that may behave as barriers, containing the price of shares to move up or down. Supports are levels where the price may find support as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue declining until meeting another support level. In contrast, a resistance level is where the price tends to find resistance as it moves up. Likewise, the price is more liable to "bounce off" at this level, and if it finally breaks this level, it will rally more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $6.58 (2.02% above)
  • R2: $6.59 (2.17% above)
  • R3: $6.60 (2.33% above)
  • The current support levels are:

  • S1: $6.42 (-0.47% below)
  • S2: $6.20 (-3.88% below)
  • S3: $6.18 (-4.19% below)
  • Bollinger bands

    So-called Bollinger bands are a well-established practice that was created by John Bollinger. It comprises three bands that are plotted superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band last Friday, the price has been corrected downwards by 7.19%

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to chart the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI ranges between 0% and 100%. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by traders

    The RSI dropped below the overbought level of 70 in mid-June after just crossing to the overbough zone for 1 day (weak signal). The RSI reading today was 59.37. Since RSI lost the overbought zone, Centrais Electricas Brasileiras S A Amer price merely moved a 0.15%

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    Earnings and financials

    Centrais Electricas Brasileiras S.A.- Eletrobras (EBR) posted EPS for the fiscal first-quarter that significantly enhanced Market expectations. Quarterly EPS was $0.00 per share from an estimated $0.38. This quarterly report represents an earnings surprise of -100%. On the contrary, the company reported turnover was $1.2 billion consistent with the market forecasts.

    Same quarter one year ago, reported EPS was $0.00, so current EPS means -. Looking at revenue, figures sank a -31.4% compared to $1.7B same quarter last year.

    EBR will host the Q2 earnings call on mid next August. Expected earnings per share (EPS) for this quarter is $0.34. Financial reporting day has an additional risk for investors as the results published can jump up or down the shares price with very low volume and not respecting your buy/stop-loss orders. You can probably find more information about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.eletrobras.com.

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