High confidence bullish signal on Petrobras as stock hits lower rail of channel
Brazilian oil and gas exploration company Petrobras (NYSE: PBR) generated a bullish signal on the Tickeron AI Trend Prediction tool on April 18 and that signal had a very high confidence level at 85%. Past predictions on Petrobras have been successful 69% of the time and this signal calls for a gain of at least 4% over the coming month.
The chart for Petrobras shows that the stock has been trending higher since last September with a trend channel guiding the stock through the different cycles within the overall upward trend. The stock did move above the upper rail for an extended period in October and it did move below the lower rail for a brief period in December, but for the most part, the upper and lower rails have marked the highs and lows.
We see that the stock hit the lower rail last week and did rally a little. The daily stochastic readings had reached oversold territory and they made a bullish crossover on April 18. Between the bullish signal from the Trend Prediction tool, the bullish crossover from the stochastics, and the support from the lower rail—the technical picture for Petrobras looks pretty good.
As for the fundamentals of Petrobras, they are a little mixed. The earnings grew by 132% in the most recent quarterly report, but the EPS have been flat over the last three years. Analysts do expect earnings to grow by 30% in 2019. The company is expected to announce its first quarter results on May 7.
The company’s return on equity is a little low at 9.1% and the profit margin is average at 18.8%.
PBR's Stochastic Oscillator remains in oversold zone for 1 day
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
PBR moved above its 50-day moving average on June 10, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for PBR crossed bullishly above the 50-day moving average on June 12, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PBR advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 266 cases where PBR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for PBR moved out of overbought territory on June 23, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 50 similar instances where the indicator moved out of overbought territory. In of the 50 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 27, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on PBR as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PBR turned negative on June 27, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PBR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
PBR broke above its upper Bollinger Band on June 11, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.297) is normal, around the industry mean (1.194). P/E Ratio (3.990) is within average values for comparable stocks, (24.146). Projected Growth (PEG Ratio) (1.836) is also within normal values, averaging (4.841). Dividend Yield (0.193) settles around the average of (0.111) among similar stocks. P/S Ratio (0.971) is also within normal values, averaging (0.975).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 52, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PBR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a company which engages in exploration, refining and processing of oil and natural gas
Industry IntegratedOil
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