PBR Petrobras Daily Chart Positive Divergence Launch Potential Inverted H&S

PBR is a nice chart showing the textbook possie d rocket launch. The green falling wedge points to the launch pad. Indicators are at or coming off oversold levels and the green lines show positive divergence. The weekly chart has the same characteristics, oversold, falling wedge and possie d. When the two time frames agree in this manner, daily and weekly charts, the trade has a 90 percentile plus success rate. Keystone entered a couple days ago and took profits. PBR has been severely beaten but the worst of it appears over. Petrobras would be expected to move sideways to sideways higher for the weeks and months to come.

The brown lines show interesting resistance levels. There is a juicy gap at 12 that will need filling and may serve as an attractive near-term target. The neon green lines show a potential inverted head and shoulders pattern that will need a right shoulder. The head at 10.2 and neckline at 11.8 targets the overhead resistance at 13.4 if the 11.8 neck gives way. The expectation is for PBR to move towards 12-14 as the year moves along. Price will need to back and fill, and have fits and starts, but Petrobras is an attractive long play moving forward and there are not many attractive long plays in this bubble-laden and overextended stock market. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.