Petrobras (NYSE: PBR) Beaten-Down Oil Stock Poised for a Rebound

Brazilian integrated oil and gas company Petrobras (NYSE: PBR) rallied 6.6% on Friday in a technically significant move. The stock broke past near-term lateral resistance, as well as a series of long-, medium- and near-term diagonal resistance lines, and looks poised to rally further in coming weeks.
On Thursday, news broke that Petrobras is in talks with Brazilian electricity company Companhia Energ (NYSE: CIG) to sell it a 40% stake in natural gas distributor Gasmig worth $270 million.

Petrobras, whose share price has been on a near constant decline for years, is looking to shed non-core and low-yielding assets. The company has incurred billions in operational losses in recent years because Brazilian president Dilma Rousseff used it to subsidize fuel imports in order to hold down inflation. Rousseff's decreasing popularity among voters may also have contributed to last week's rally in PBR.  (more)

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