Sell signal · Week 4
Petroleo Brasileiro: decline continues amid distribution and double bottom
Sell signal · Week 4
In Summary
Petroleo Brasileiro is at week 4 of a sell signal, with the trade up 9.59% since entry. The week closed lower again, but the daily chart has formed a double bottom in the 42 area — a potential stabilization signal worth monitoring. The structural decline holds, but the next sessions will show whether selling pressure resumes or fades.
IQS Phase
81
in tension / maturity
Signal Strength
40
shallow weekly drop
Sizing
REDUCED
Ranking
#4 / 25
Rest of the World stocks
Trade P&L %
+9.59%
from signal to today
restricted Platinum content
Rank position
ranks 4th among the 25 sell signals for titoli resto del mondo in our ranking, with a signal strength of 81 out of 100.
Sector context
SectorEnergy
Benchmark ETFXLE
Sector regimeweak phase
Performance1W +0.13% · 1M -5.53%
PETR3 belongs to the energy sector (reference ETF XLE). 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 (4 segnali di attenzione su 11 componenti)
Score45/ 100
Weekly reading with 4 attention signals: the structure shows fragility on components.
⚠ Attention signals (4)
PA2 · contracting volumesPA8 · buyer dominance collapsingPA9 · sellers extremely dominant in the last barPA10 · strong distribution phase
Daily pattern
Double bottomStrong
Double bottom in the 42 area with an intermediate rebound of 6%.
Reference levels: 41.81 · 42.03
DLIQS · Setup phase
81/ 100
in tension / maturity
3-week slope: coming soon
DLSignal Strength40 / 100
40/ 100
Mediumshallow weekly drop
DLNo-Trade Zone
No-Trade Zone · operational range
Zone shaded by prevailing regime
close
32.02
54.10
41.81
44.31
DLDistance from all-time highs0.00%
92/ 100
Ample headroom
Distance from ATH: 0.00% · Tests on highs (last 10w): 0
DLSupport & Resistance
Resistances
43.02Day200-day moving averagerejected 1× · 22/06 · broken 1× · 15/06+1.82%
44.31Day7-day highrejected 3× · 22/06+4.88%
44.81Daydaily Bollinger Band midlinerejected 2× · 22/06 · broken 2× · 27/04+6.06%
44.83Day20-day moving averagerejected 2× · 22/06 · broken 2× · 27/04+6.10%
44.91Daydaily VWMArejected 2× · 22/06 · broken 2× · 27/04+6.31%
45.97Day100-day moving averagerejected 1× · 15/06 · broken 1× · 25/05+8.80%
Supports
41.81Day7-day lowrejected 2× · 22/06-1.04%
41.45Daydaily lower Bollinger Bandrejected 2× · 22/06-1.89%
39.85Week100-week moving average-5.68%
39.17Day90-day low-7.29%
37.46Week200-week moving average-11.34%
30.99Week30-week low-26.65%
Operational plan · summary
Week 4 of the sell signal on Petroleo Brasileiro, with the trade up 9.59% since entry. The week closed down 2.5% — modest compared to the prior week's −6.2% — with sell volume at 90%, consistent with the preceding weeks. The bearish front holds directionally, but with less momentum.
On the technical side, the MACD histogram continues to deteriorate (from −0.79 to −1.47) and MACD remains in negative territory: no reversal of the bearish pressure yet. CMF at −0.253, persistently negative over multiple weeks, confirms ongoing distribution. RSI at 44 has been declining steadily from the 52.1 reading in mid-June.
On the daily chart, however, one element deserves close attention: a double bottom in the 42 area with an intermediate rebound of 6%, while daily RSI has dropped to 27.8 and price is already below the daily Ichimoku cloud. If the 42 area holds through the coming sessions, the bearish front could lose further momentum. Next week, the focus should be on that double bottom: a break lower would reopen room toward the more distant weekly moving averages; a sustained bounce on volume would call the continuation of the decline into question.
Operational levelsTrade P&L +9.59%Opened May 29, 2026
SHORT
Entry
46.73
SL1
50.65
+8.39%
SL2
51.30
+9.78%
TP1
42.98
8.03%
TP2
41.37
11.47%
LONG (alternative scenario)
Entry
46.74
SL1
42.83
-8.37%
SL2
42.17
-9.78%
TP1
50.82
8.73%
TP2
51.96
11.17%
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).
Reading guideHow to read this page →
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.