Sell signal · week 3 · trading not recommended
Braskem: 29% down from open, but new entries remain high risk
Sell signal · week 3 · trading not recommended
In Summary
Braskem is in week 3 of a sell signal, with the trade already at −28.82% performance since open. The confirmation week closed bearish, keeping the downtrend intact. Signal strength reads 92 out of 100 — one of the sharpest weekly drops in recent history — but that calls for caution, not reinforcement: high-amplitude declines often signal potential exhaustion. Our model flags trading not recommended for new short entries.
IQS Phase
83
in tension / maturity
Signal Strength
92
sharp weekly drop · exhaustion risk
Sizing
STANDARD
Ranking
#3 / 25
Rest of the World stocks sell signals
Trade P&L %
+28.82%
from signal to today
restricted Platinum content
Rank position
ranks 3rd among the 25 sell signals for titoli resto del mondo in our ranking, with a signal strength of 82 out of 100.
Sector context
SectorMaterials
Benchmark ETFXLB
Sector regimeweak phase
Performance1W -0.41% · 1M +0.82%
BRKM5 belongs to the materials sector (reference ETF XLB). The sector is classified weak phase according to our weekly reading.
Confirmation week
confirmation week closed bearish
the confirmation suggests keeping the position unchanged
Setup qualityTrading not recommended
Opening at elevated risk per our model; the asset continues to be analyzed week by week.
DLPrice Action · Last 4 weeks
bearish with warnings (3 segnali di attenzione su 11 componenti)
Score45/ 100
Weekly reading with 3 attention signals: the structure shows fragility on components.
⚠ Attention signals (3)
PA8 · buyer dominance collapsingPA9 · sellers extremely dominant in the last barPA10 · strong distribution phase
DLIQS · Setup phase
83/ 100
in tension / maturity
3-week slope: coming soon
DLSignal Strength92 / 100
92/ 100
Highsharp weekly drop · exhaustion risk
DLNo-Trade Zone
No-Trade Zone · operational range
Zone shaded by prevailing regime
close
0.75
14.18
5.83
9.10
DLDistance from all-time highs0.00%
92/ 100
Ample headroom
Distance from ATH: 0.00% · Tests on highs (last 10w): 0
DLSupport & Resistance
Resistances
6.31Daydaily lower Bollinger Bandrejected 2× · 22/06 · broken 2× · 15/06+0.90%
8.32Daydaily VWMArejected 5× · 22/06 · broken 4× · 18/05+33.16%
8.43Day20-day moving averagerejected 3× · 22/06 · broken 3× · 18/05+34.85%
8.46Day7-day high+35.36%
8.60Daydaily Bollinger Band midlinerejected 4× · 22/06 · broken 4× · 18/05+37.65%
9.12Week20-week moving averagerejected 3× · 15/06 · broken 3× · 25/05+45.97%
Supports
5.88Day7-day lowrejected 2× · 22/06-5.92%
Operational plan · summary
The picture points to maintaining an existing short position, not opening a new one. Braskem sits at week 3 of a sell signal and ranks 3rd among the 25 sell signals for Rest of the World stocks in our ranking. The guiding read remains bearish: weekly structure in intermediate decline, IQS at 83 out of 100 in the tension and maturity phase. The confirmation week closed bearish, with price action showing sellers extremely dominant on the last daily bar and a clear distribution phase building on the daily chart. Signal strength at 92 out of 100 reflects a sharp weekly drop — and that amplitude is best read as a possible exhaustion signal, not confirmation the decline will continue. On the daily timeframe, RSI has reached 23 in oversold territory, CMF at −0.25 points to distribution, and the −DI is firmly above the +DI. Those in an existing short position find a stop reference in the 9 area, anchored to the Pivot Point, with targets in the 7 area and the 6 area. Opening a new short at this stage, however, carries elevated risk per our model: the quality band flags trading not recommended, and entering after such an extended drop exposes to technical bounces. Discipline suggests managing the existing position and waiting.
Operational levelsTrade P&L +28.82%Opened June 5, 2026
SHORT
Entry
8.78
SL1
10.81
+23.12%
SL2
11.15
+26.99%
TP1
7.43
15.42%
TP2
6.85
22.02%
LONG (alternative scenario)
Entry
9.10
SL1
7.07
-22.31%
SL2
6.73
-26.04%
TP1
11.21
23.25%
TP2
11.81
29.75%
Legend of recurring terms click to expand
IQS PhaseSetup Quality Indicator (0-100): descriptor of the asset's phase relative to its volatility norm. Toward 0 = compressed/accumulation · ~50 = ordinary · toward 100 = stretched/mature. Descriptive, not predictive.
Signal StrengthCalibrated 0-100 indicator, re-modulated weekly. For buy signals it is the probability that the weekly signal reaches the first target without hitting the Stop Loss: high value = compelling bullish scenario. For sell signals it measures the amplitude of the signal week's drop: high value = very sharp drop, which may signal exhaustion rather than continuation.
Setup qualitySetup grade at trade opening. Full open = aligned conditions · Selective open = limited constraints · Operation not advised = the model flags elevated risk at entry · Watch/Skip = not operational. The asset continues to be analysed weekly anyway.
SizingCapital allocation relative to the standard budget per position. Full = 100% · Standard = 75% · Reduced = 50% · Minimum = 25%. Modulated by Signal Strength and setup quality flags.
Rank positionOrdering by Signal Strength inside the category × state pair (US Stocks or EU-UK Stocks · Open buys or Sell signals). Helps compare the current position with the others alive in the same category.
Inversion PointWeekly structural level fixing the Stop Loss reference. For a buy signal it is below entry (giving up that level invalidates the bullish reading); for a sell signal it is above entry (a breakthrough invalidates the bearish reading).
No-Trade ZonePrice band between resistance below and support above where entry is not immediately operational. When the NTZ is active, trading is suspended inside the zone; entries become valid above the upper extreme (long) or below the lower extreme (short).
Breakeven stopOperational SL stage for active buy trades: after the first-week confirmation and price advance, the stop is moved to the entry level and trade risk is zeroed out. The structural Stop Loss remains as a long-term reference.
6/8/10-week windowsThree statistical active-management moments on stock buy trades, derived from our backtest. At weeks 6, 8 and 10 trimming 10%, 20% and 30% of the position is suggested; the residual capital (the remaining 40%, untrimmed) can be kept and left to run until the inversion, with a trailing stop on the Inversion Point. Suggestions, not automatic system events.
Statistical TPs / Time exitThe TPs are statistical time+value targets: they estimate where price would be at a given week if the trade ran at average speed (ATR), and decay toward entry at the gate. The real price at the target week can be much higher (strong trend) or never reach them (weak trend). Time exit is the actual gain (entry→close of the gate week): it is why we manage by time — trimming the planned share at the set week often captures a far larger margin than the mathematical TP.
Reinforced tradeQualification of the buy trade when the confirmation week candle closes higher than the signal week. The system recognises the setup as confirmed by the price reaction.
Structural alertsPrice conditions the system considers relevant for setup qualification. Examples: above weekly EMA200 (stock far from a structural bearish framework, making a new short less safe); range trapped (stock trapped in a prolonged horizontal range).
Entry triggerType of event that operationally opens the position: breakout = breach of a key level (7-session high for a long, 7-session low for a short); pullback = pullback to the pivot or 20-day moving average after a first move in the signal direction.
Distance from highsPercentage distance from the all-time high (ATH) and frequency of tests on highs over the last 10 weeks. Close to ATH means limited running room; wide distance means room before the first significant ceiling.
Support & ResistanceThe technical levels above (resistances) and below (supports) price: moving averages, Bollinger bands, Ichimoku cloud (Kumo), historical highs and lows. Each level shows recent tests — how many times over the last ~5 months price reached it and was rejected (grazed, clean touch or decisive rejection) or broke through it (breakout/breakdown), with the date of the latest episode. More rejections = a more solid wall; a recent breakthrough = the wall has fallen.
IQS Slope (3 weeks)The direction of the IQS Phase over the last three weeks: whether the setup's tension is rising, falling or staying flat. It helps tell whether the asset is approaching a stretched/mature phase or unwinding, beyond the point-in-time IQS value.
Trade start dateThe week the current signal opened. Together with the percentage gain since start, it shows how long the trade has been running and where it sits along the management path (scale-out windows, breakeven stop).
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Disclaimer — The content on this page is published for educational and informational purposes and represents the author's personal opinion and technical analysis. It is not financial advice, a solicitation to invest, or personalised recommendation. Trading financial instruments involves significant risks and may result in the loss of all or part of the invested capital. Every operational decision is the sole responsibility of the user, who acknowledges acting in full autonomy and full awareness of risk.
Copyright — All text, analytical methodology and proprietary indicators (IQS Phase, Signal Strength, NTZ, Inversion Point, Entry Protocol, Ranker, Exit Gate) published on aitrading67.com are © Fabio Gentili. Reproduction, in whole or in part, in any form and for any purpose, is prohibited without the author's written permission.