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 RSI Indicator climbs out of oversold territory
The RSI Indicator for PBR moved out of oversold territory on July 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 21 similar instances when the indicator left oversold territory. In of the 21 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where PBR's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 08, 2026. You may want to consider a long position or call options on PBR as a result. In of 74 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PBR just turned positive on July 07, 2026. Looking at past instances where PBR's MACD turned positive, the stock continued to rise in of 44 cases 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 348 cases, the price rose further within the following month. The odds of a continued upward trend are .
PBR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
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 .
The Aroon Indicator for PBR entered a downward trend on July 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
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 34, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (1.293) is normal, around the industry mean (2.197). P/E Ratio (5.495) is within average values for comparable stocks, (22.485). PBR's Projected Growth (PEG Ratio) (4.314) is very high in comparison to the industry average of (1.165). PBR's Dividend Yield (0.087) is considerably higher than the industry average of (0.043). P/S Ratio (1.177) is also within normal values, averaging (2.118).
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.
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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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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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