PBR INSIDE A FLAT CORRECTIONGap closed and new impulse started, should stop at 7.45 or 8 and then fall in 5 waves to 5.45 to finish this flat correction. Then a new upwards cycle should start
PETR3 trade ideas
PBR is correlated to oil prices, but that's not all...PBR is correlated to oil prices, but that's not all. Out of a selection of other oil majors, PBR underperforms significantly when the starting month of August 2011 is chosen, a date I arbitrarily chose due to launch of a new industrial policy in Brasil (a proxy of changing economic policy). Note, however, work done by my friend, Raphael Geraldelli (related ideas), showing a much closer correlation of PBR to oil prices in a more recent period (). The takeaway here is that although PBR is correlated to oil prices, internal company issues and Brazilian political economy played an important historical role in the stock's price and I believe it will continue to do so moving foreword.
Optimism?Petrobras in a new management. The new president says that he intends to rescue the company of an "organized gang", and will attempts partnership with shareholders to raise the economy of the company. In the other hand some scholars do not agree with the Parente's (new Director) proposals and intend to struggle against the reform in the company.
In my view, I am optimistic about the change in the company and the way of the Lava Jato (anti-corruption investigation) is taking.
From now the trend is improving, though bad times are still to come! Be aware.
BMFBOVESPA:PETR4 BMFBOVESPA:IND1!
Kind Regards.
