Companhia Paranaense de Energia - Copel (ELP)

Company

"Companhia Paranaense de Energia - Copel is a power utility that has traditionally operated in the areas of power generation, transmission, and distribution within the State of Paranà, in southern Brazil. With the implementation of a new institutional framework for the Brazilian power sector, the Company started to diversify its operations; it currently runs a telecommunications business, in addition to holding interests in other companies operating in such areas as power generation and power marketing, piped gas, sanitation, fixed and mobile telephone services, internet service providers, power and infrastructure projects, research and development, power and project management, and agribusiness. Copel also makes its expertise available to both domestic and international markets: it has provided consulting services to countries such as Argentina, Chile, China, Colombia, Malaysia, and Paraguay." (company website)

ELP 3-month stock chart

Buy

Last year I mis-read the Copel chart and lost a little money going short. The uptrend seems firmly in place now and the 50-day moving average has started to rise noticeably. The chart looks like it formed a Long Legged Doji yesterday, so I am willing to believe the pullback after the new 52-week high is complete. At any rate, there is a nice clear uptrend. (Advanced Analyzer doesn't identify the Long-legged Doji, but I think it's close enough!)

  • Price momentum (PPO) — improved greatly over last three months
  • Trend (ADX) — weak, but getting gradually stronger
  • Money flow (CMF) — has gone from outflow to inflow
  • Relative strength (RSI) — persisting at neutral or above
  • Volume — mixed
ELP 1-year chart ELP 1-year chart

Based on technical analysis, MarketEdge calls ELP a "buy" in a "weak upward trend" at a "good entry point" because it is "oversold."

Sell

gain Bottom line
7%

After setting another 52-week high, ELP has fallen two days in a row. I decided to bail out because the indicators I watch all took a sharp turn downward. What I expect to happen is that ELP will fall closer to the 50-week moving average, which will be a good time to assess jumping back in again. The trend is still upward, but leveling off a bit.