Will PBR Unleash Powerful Bull Run?

Heading into the FOMC announcement, we continue to hold Petrobras (PBR) as an active trade set-up because the multi-month pattern resembles a substantial base, or accumulation period, in the aftermath of a 2 1/2-year bear phase from 53.50 to 17.27.

Let's notice the series of higher-lows that have been carved out since the June 28, 2012 low at 17.27.

Unless and until the series of higher-lows is violated, I intend to remain long PBR in our model portfolio, looking for strength that climbs above a formidable resistance plateau at 20.50-20.85 to unleash a powerful bull run towards 24.00-26.00, subsequently.