PBR Stock Price Has Shown a Failed Breakout, Will It Re-Attempt?

• The PBR stock price has declined by 4.98% in a week.
• The PBR stock reached a decade-high level of $16.55 on 18 October 2023.
• It has formed a rising channel pattern at the top of the trend.

The PBR stock price has been in a strong uptrend since March 2020. If we ignore the minor correction it has shown in between, the stock price has witnessed a surge of over 800%. It reached a decade-high level of $16.55 on 18 October 2023 but has failed to sustain that level and reversed from the higher level. The stock price has declined by over 6% from the highs.

Considering the profit generated by the company, It has shown a surge of over 1300% and 84% in the previous two financial years. That could be the possible trigger for this upward journey of the stock. Currently, the stock is clearing out the sellers sitting at the major levels and inviting more buyers to push the price up.

The PBR stock price has formed a rising channel pattern and given a breakout of that. However, the buyers have failed to give a follow-up buying and the price came back inside the channel. The noticeable thing is the angle of the pattern. It is considered to be a bearish pattern but given a breakout on the upside and failed miserably. 

An Outlook of the PBR Stock Chart

The stock price has formed a gap on the daily chart and has formed a doji kind of candle for the last three trading sessions. It has not been corrected since March 2023, forming a higher high and higher low pattern, which confirms the uptrend. However, the sellers are not much price and are not able to form a good bearish candle.

The trendline resistance for the stock is present at the level of $16.25 and for support at $13.84. Apart from this, other resistance is present at the level of $16.55 and $18.06. Considering the support level of the PBR stock, it is present at the level of $13.58 and $12.75.

An Overview of the Exponential Moving Average and Relative Strength Index

The PBR stock price is trading above the 50-day and 200-day Exponential Moving averages, which is a bullish sign. There is a huge gap between both the EMAs, which indicates that the uptrend is strong. The Relative Strength Index is currently curving at the level of 53.06 and the slope of the RSI is downward which is a negative sign. 

Conclusion

After the stock was given a fake breakout on the upside, it is currently witnessing some selling pressure and it is expected to rise further. The RSI is also indicating that the bulls have lost momentum and bears are slowly gripping the price. If the bulls fail to bring the momentum in their favor, the price can further slide down to the level of $13.58.

Technical Level

Resistance – $16.55 and $18.06

Support – $13.58 and $12.75.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.