Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) has been in a consolidation over the last two weeks in the 9.73-10.15 range (developing a bullish flag formation) after a big surge in price and volume in the first week of the current month. On Friday, the stock opened lower, but quickly rebounded and tried once again to break the resistance level but without success. If this level ($10.15) is broken with volume next week, this could be the start of new momentum to the upside that could move the stock toward the $11 area. Daily technical indicators are correcting overbought conditions, but the bias remains to the upside.
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This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.