Companhia Paranaense de Energia - Copel (ELP)

Company

ELP 1-year chart ELP 1-year chart

"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 6-month chart
ELP 6-month chart

Buy

Earlier in the year, I sold a lot of ELP for a respectable profit, anticipating that I would jump back in after it touched up with the 50-day moving average. As it turns out my fears were, like Mark Twain's death, greatly exaggerated, and ELP has continued to climb steadily.

  • Price momentum (PPO) — steady rising
  • Relative strength (RSI) — above neutral after being over-bought for a long time
  • Trend (ADX) — very strong
  • Volume — rising

Based on technical analysis, MarketEdge calls ELP a "strong buy" in a "strong upward trend."

Sell

gain Bottom line
11%

ELP has gone up by leaps and bounds since I bought. Surely, I thought, it will pull back soon. I put in a sell order at a high price, intending to take profits if they were available. Just before the close my order executed. Looking at the chart, I see a lot of strength and half wish I hadn't sold so soon. On the other hand, it does feel good to see those capital gains piling up.

I fully expect to hop on to the ELP train for the next upcycle.