Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has been in a
sharp downward trend over the last year. This oil company traded as
high as $32.60 in 2012 before hitting a new 52 week low just
yesterday at $14.59. This fall has been due to a couple reasons.
Tough regulation in Brazil has hurt while the mountain of debt they
hold continues to hamper expansion. Current debt holds around $100
million.
While the stock price has suffered and prospects look bleak,
technically the chart is into significant support. In 2008, the
stock hit a low of $14.73. This is the current level of the stock,
also known as a multi-year double bottom. If this stock is to have
a solid bounce, this is the level to find it. Look for upside
back to $17.35.
Gareth Soloway
InTheMoneyStocks