Sabesp · Week 7 of a sell signal
Sabesp: +4.91% since signal, but the rebound complicates the picture
Sabesp · Week 7 of a sell signal
In Summary
Sabesp enters week 7 of a sell signal, with the trade up 4.91% since inception. This week closed with a sharp rebound of +9.8%, buy volume at 92% versus 9% the previous week — the strongest buying session in 4 weeks, forming a double bottom in the 27 area on the daily chart. A signal that demands careful reading for those holding a short position.
IQS Phase
58
ordinary
Signal Strength
9
indecisive week
Sizing
MINIMUM
Ranking
#20 / 25
Rest of the World stocks
Trade P&L %
+4.91%
from signal to today
restricted Platinum content
Rank position
ranks 20th among the 25 sell signals for titoli resto del mondo in our ranking, with a signal strength of 58 out of 100.
Sector context
SectorUtilities
Benchmark ETFXLU
Sector regimein positive regime
Performance1W +3.22% · 1M +2.35%
SBSP3 belongs to the utilities sector (reference ETF XLU). The sector is classified in positive regime 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
bullish with warnings (1 segnali di attenzione su 11 componenti)
Score75/ 100
Bullish weekly reading, structure still positive but with one attention signal.
⚠ Attention signals (1)
PA10 · strong distribution phase
Daily pattern
Double bottomStrong
Double bottom in the 27 area with an intermediate rebound of 7%.
Reference levels: 26.71 · 26.81
DLIQS · Setup phase
58/ 100
ordinary
3-week slope: coming soon
DLSignal Strength9 / 100
9/ 100
Lowindecisive week
DLNo-Trade Zone
No-Trade Zone · operational range
Zone shaded by prevailing regime
close
24.33
34.93
29.44
29.82
DLDistance from all-time highs0.00%
86/ 100
Ample headroom
Distance from ATH: 0.00% · Tests on highs (last 10w): 0
DLSupport & Resistance
Resistances
29.82Day7-day highrejected 3× · 22/06+0.74%
30.80Daydaily Kumo floorrejected 1× · 11/05 · broken 1× · 04/05+4.04%
31.78Daydaily Kumo ceilingrejected 1× · 11/05 · broken 1× · 04/05+7.38%
35.32Day90-day highrejected 2× · 27/04+19.32%
Supports
29.19Week20-week moving averagerejected 3× · 22/06 · broken 1× · 15/06-1.38%
29.15Day100-day moving averagerejected 2× · 22/06 · broken 1× · 15/06-1.51%
29.06Day50-day moving averagerejected 2× · 22/06 · broken 1× · 15/06-1.81%
29.03Daydaily upper Bollinger Bandrejected 2× · 22/06 · broken 2× · 15/06-1.93%
28.26Day20-day moving averagerejected 5× · 22/06 · broken 2× · 15/06-4.54%
27.82Day200-day moving averagerejected 2× · 22/06 · broken 1× · 15/06-6.02%
Operational plan · summary
Week 7 of the sell signal on Companhia de Saneamento Basico do Estado de Sao Paulo SABESP, and this week shifted the tone: the close came in +9.8% higher, with buy volume at 92% — the strongest buying participation in 4 weeks. This warrants an honest read. On the short-term indicators, the MACD remains negative but the histogram has narrowed to −0.61 from −0.79: bearish pressure on the histogram is easing, though still below zero. CMF moved from −0.416 to −0.308 — still in distribution, but with a visible improvement. Momentum edged from −4.9 to −5.4, a counterintuitive move given the strong candle, while RSI climbed from 41.8 to 52.8, returning to neutral territory. On the daily chart, a double bottom is forming in the 27 area, with a 7% intermediate rebound: the hold of that level is the key technical reference for those short. As long as CMF does not turn sustainably positive and the MACD does not cross zero, the bearish structure holds. Next week, watch for rebound confirmation: if buy volume stays above 70% and CMF turns positive, the reversal hypothesis gains traction; if the bounce fades with seller volume dominant, bearish pressure resumes.
Operational levelsTrade P&L +4.91%Opened May 8, 2026
SHORT
Entry
31.13
SL1
33.17
+6.55%
SL2
33.51
+7.65%
TP1
28.75
7.66%
TP2
27.72
10.94%
LONG (alternative scenario)
Entry
29.31
SL1
27.27
-6.96%
SL2
26.93
-8.12%
TP1
31.44
7.26%
TP2
32.03
9.3%
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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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.