Petrobras near Key Resistance Area
Written by Danny Miller
Wednesday, 09 February 2011 08:44
New York, February 9th (TradersHuddle.com) - Shares of Petroleo Brasileiro S.A. (NYSE:PBR) are trading very close to calculated resistance at $38.70 with the current price action closing at just $36.92 placing the stock near levels that make it difficult to buy.
Petroleo Brasileiro S.A. (NYSE:PBR) also known as Petrobras, explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. The Company is based in Brazil and operates in South America and elsewhere around the world.
Petrobras' current stock range is defined by current calculated support defined at $34.94 and by the resistance level at $38.70, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.
Traders don't have a clear entry point for Petrobras, as the stock is well above support, however, as the stock pulls back towards $34.94 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $38.70 then traders will get an opportunity to enter Petrobras stock by establishing a position as the stock moves to a higher range. http://www.tradershuddle.com/Trading-Id ... -area.html