08Jul3:23 pmEST

Let's Crack Open the Other PBR This Summer

PBR is shorthand for Pabst Blue Ribbon, a classic American pilsner. It is also the ticker symbol for Petróleo Brasileiro S.A. (Petrobras) a semi-public Brazilian oil giant headquartered in Rio. 

As Members know, Brazilian stocks have quietly been on a tear in recent weeks, with the EWZ country ETF outperforming China and printing multi-month highs as we speak. 

Should crude oil and energy stocks muster another bounce this summer, PBR has the makings of a tradable rally from the long side, at a minimum, if not something more meaningful. Glancing at the daily chart, updated below, you can plainly see the base for much of 2019, complete with a shakeout in May which was aggressively gobbled up by buyers, setting up a potentially major move higher coming soon. 

It is easy to overlook energy stocks in this tape given that many are still sporting decidedly sloppy technicals despite their recent bounces. We know that a name like LNG has been a notable exception with its relative strength for a while now. 

However, PBR has handled itself quite well, too, and could easily be at the cross-section as a beneficiary of a summer rally in both Brazil and crude. 

Low and Slow Appreciate the Symmetry

 
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