PBR closes within previous day's range after lackluster session
Petroleo Brasileiro S.A.- Petrobras (PBR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
PBR ended the week 0.41% higher at 14.64 after edging higher $0.01 (0.07%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PBR as at Feb 14, 2020):
Friday's trading range has been $0.27 (1.82%), that's below the last trading month's daily average range of $0.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PBR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 14.57 (S1). After having been unable to move lower than 14.56 in the prior session, Petroleo Brasileiro found buyers again around the same price level today at 14.58. The last time this happened on Monday, PBR gained 2.92% on the following trading day.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might accelerate should prices move below the nearby swing low at 14.56 where further sell stops could get triggered. With prices trading close to this year's low at 14.01, downside momentum might speed up should the market break out to new lows for the year. As prices are trading close to February's low at 14.12, downside momentum could accelerate should the share mark new lows for the month.