Portuguese Banks review - BCP

Hi everybody,

Portuguese banks have under great stress due to the financial and economical situation of the country. Lack of political visibility (elections due next weekend) does not help but this is an another story...

This review starts today with the biggest private Portuguese bank, Millenium BCP.

Buying this stock hasn't been a properly a fairy-story. But still, if trees don't touch the sky, the roots never reach the Hell either. So you may prepare for a rebound on the next few days.

Let's look at some charts on a daily basis. Note on the chart below the characteristics of the two last bearish waves, with the same length. The first one have been retraced by 61,8% and the second one by 50%. So that means, the current wave has a target around 0,476. This may be the level of the MACD support trendline shown on the chart.


click on charts

On the chart below, you can see that prices are next to the 3rd standard deviation of the Vwap. This is an extreme level that normally statistically leads to a rebound. Also note that the RSI(21) is heading towards its support in oversold territory. That should be a good buying point if validated by a volumes above MA20 (16,8 M shares)



Good trades
Pj.