Can Petrobras Hold This Major Double Bottom?
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.