PBR-A closes above its opening price after recovering from early selling pressure
Petroleo Brasileiro S.A.- Petrobras American Depositary Shares (PBR-A) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PBR-A ended the week 14.38% higher at 6.76 after losing $0.14 (-2.03%) today on low volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.13 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, PBR-A gained 0.31% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PBR-A as at May 22, 2020):
Friday's trading range has been $0.22 (3.29%), that's below the last trading month's daily average range of $0.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PBR-A.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 7.10 where further buy stops might get triggered. Further buying could move prices higher should the market test April's close-by high at 7.37.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Petroleo Brasileiro. Out of 213 times, PBR-A closed higher 52.58% of the time on the next trading day after the market condition occurred.