Companhia Paranaense de Energia - Copel (ELP)

Company

ELP 1-year chart ELP 1-year chart

Copel – Companhia Paranaense de Energia – generates, transmits, and distributes electric power in the State of Paraná, being one of the largest electric power companies in Brazil. The Company's position in the sector is a result of 52 years of experience and technical proficiency in generating, transmitting and distributing electric power. Copel also provides telecommunications, IT and other services through several companies it holds a stake. (company website)

ELP 6-month chart
ELP 6-month chart

Buy

Copel has been following a pattern of steep rises followed by modest pullbacks. I think that has just happened ELP is ready to push ahead to another new high. I do wish, however, that I had bought two days ago when it dipped to $15.30 instead of at today's price!

  • Price momentum (PPO) — steadily rising trend
  • Relative strength (RSI) — still quite strong
  • Trend (ADX) — still strong, although buying pressure (+DI) slipped below selling pressure (-DI) during the pullback
  • Volume — solidly higher for past month

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

Sell

gain Bottom line
4%

Although ELP just set another 52-week high, I decided today to take profits again. I think the stock is getting tired. After the gap up to set the new high, it has fallen back. Price momentum (PPO) and the trend (ADX) are both weakening. ELP has been three months without a major correction, and I just don't think it can sustain the pace. Since I bought this lot, it has traded at or below my buy price four times; that's a little scary. I think I'll move to the sidelines until earnings are reported early next month.