PBR runs into sellers again around 6.16
Petroleo Brasileiro S.A.- Petrobras (PBR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PBR ended Thursday at 5.81 edging higher $0.01 (0.17%), notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PBR as at Mar 26, 2020):
Thursday's trading range has been $0.59 (9.88%), that's below the last trading month's daily average range of $0.79. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PBR.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on March 18th, PBR actually gained 17.40% on the following trading day.
Prices are trading close to the key technical support level at 5.39 (S1). After having been unable to move above 6.05 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 6.16.
While Petroleo Brasileiro is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Petroleo Brasileiro. Out of 157 times, PBR closed higher 62.42% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after nine trading days, showing a win rate of 47.13% with an average market move of 0.22%.