) chart shows this monster may be consolidating at the 200 day
moving average after a 30% spike off the March lows.
[caption id="attachment_70733" align="alignright" width="300"
caption="Petrobras oil rig off the Brazilian coast"]
I have been a proponent of shorting this stock at the 200 day
moving average where there is major resistance which also includes
a 6 month mean high at $19.50. Yesterday the stock closed at
But after 8 trading sessions PetroBras is holding this
level and news that the company is seeing falling borrowing costs
(who Isn't) is giving hope to free cash flow (FCF) generation.
While nothing has really changed in the wasteful way the company
operates, they are getting a boost from the global rate environment
and can point to 2 tariff price hikes this year.
Be careful of yesterday's trade which was to fade any pop in
PBR. While sideways in this trade after 8 trading sessions, the
price action tells me this stock may find new mojo.