PBR stock: buy or sell
Updated on:
Jan 27th, 2021
2
PBR stock brief
- Petrobras stock exploded 2.58% to close at $10.35 on the stock market on Tuesday, and broke a streak of 6 sessions in red.
- Price is drawing a scaled uptrend since last October with higher tops and higher bottoms. Up to date, shares made a 68.29% profit since the beginning of this rally
- Petróleo Brasileiro S. A. - Petrobras produce and sells oil and gas in Brazil and internationally.
Should I buy Petrobras 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 $PBR stock a buy?
In the current situation of Petrobras there is just one buy setup eligible:
Uptrend buy setup
Petrobras stock is in an uptrend since last October that so far has marked a gorgeous 68.00% gain. Price marked a local bottom in this uptrend at $9.81 on Monday, and since then it bounced up a 5.50%. Now, it's only 14.88% away from breaking out over its last top and resume the uptrend. The new entry point is therefore at $11.89. If you decide to enter this trade, the suggested stop loss is at $10.70
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $11.89 | $10.70 | 10.00% |
Should I sell Petrobras stock?
When is it time to sell Petrobras stock?. In the same way as when we have to buy shares, choosing when is appropiate time to sell is not a haphazard decision, and we must use our own trading style. Our trading system selects very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups are not intended for shorting $PBR stock
A golden rule is that you must never hold a trading operation that yields higher than expected losses by the time of purchase. When to sell your stock should always be dictated by the stop-loss (automatic or manual)
Is it time to sell Petrobras stock?
In the current situation of Petrobras there is not any eligible sell setup, so Petrobras stock holders with operations in green can keep their positions
Price lost SMA50 level
Petrobras shares' price gained a 39.71% in a month during the time it was above the 50-day SMA. Last Friday, price broke through the 50-d MA showing that the prior bullish trend appears to be come to an end. For medium-term investors who benefited from the gains during the period the price was above the average, this flag should be a wake-up call and a reason to sell the stock and get their gains
Petrobras ratings
We don't have any rating posted in the previous 30 days for Petrobras
Petrobras stock analysis
Petrobras shares started an uptrend last October, and gained an amazing 68.29%. The price shows higher tops and bottoms, and along the way gave very few buy points for those who wanted to trade in. Latest pullback was on Monday, when price bounced at $9.81. Like in all uptrends, price needs to rest and now price is consolidating the gains in a range between $11.89 and $9.81
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
Since the price broke down the lower band on Monday, the price has bounced off by 5.50%. The price is moving near to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a buy point, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 on January 11 after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Tuesday was 42.09. Petrobras stock sank a 11.46% since RSI lost the overbought zone
Petrobras stock price history
Petrobras started trading on Aug 10th, 2000 priced at $2.46 per share1. Since then, PBR stock has risen by 320.73%, with an average of 16.04% per year. If you had invested thousand dollars in Petrobras stock on the IPO, it would have a value of $4,207.32 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Petrobras stock
Nobody knows how much a stock will be priced in the future. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
The following table shows the price predictions released by analysts for the last 30 days. Again, these predictions are not direct recommendations for individual investors and must not be trusted blindly.
In the last month we couldn't find any price target published for Petrobras stock.
Earnings and financials
Last October, Petroleo Brasileiro S.A. - Petrobras ($PBR) reported EPS for that significantly enhanced Wall St. expectations. Quarterly EPS was $-0.02 per share from an estimated $-0.11. This Q3 report means an earnings surprise of 81.82%. On the contrary, reported sales were $13.1 billion, aligned with analysts' estimates.
Same quarter last year, reported EPS was $0.38, so recently reported EPS is a reduction of -105.26%. Looking at revenue, figures sank a -19.24% compared to $770.5B same quarter a year ago.PBR ($PBR) releases quarterly financial report mid next February.
Petrobras performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Petrobras ($PBR) | -5.70% | 42.60% | 14.00% |
Important note:
The viewpoints contained in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not know the specific conditions of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for education purposes onlyPBR summary
| Tuesday, January 26th, 2021 | |
|---|---|
| Open | $10.4 |
| Close | $10.35 |
| Day range | $10.29 - $10.57 |
| Previous close | $10.09 |
| Session gain | 2.58% |
| Average true range | $0.51 |
| 50d mov avg | $10.57 |
| 100d mov avg | $9.05 |
| 200d mov avg | $8.47 |
| Earnings date | February 17th, 2021 |