Three months into Lula administration, Petrobras shudders
Petrobras stock prices fell 4.29 percent in Q1 2023, three months into President Luiz Inácio Lula da Silva’s administration. Traders believe the shares are about to fall below the psychological threshold of BRL 22.50 (USD 4.43) per share, which could scare investors and create a self-fulling prophecy of devaluation.
State of play. “If [the threshold] is broken, it could start to make room for further declines and start to set up a short-term downtrend,” Enrico Cozzolino, Fernando Keith, and Ricardo Afonso, analysts at Levante, told InfoMoney. Itaú-BBA analysts see a similar barrier at BRL 22.45; a dip below that could lead to further pullbacks taking share prices as low as BRL 20.75.
- Over the past 12 months, the company’s shares have gained 21 percent in value. But the short- and medium-term uncertainty shown in daily or weekly charts could also affect the long-term uptrend of Petrobras...
Search
