Companhia Paranaense de Energia (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 Paraná, 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 stock chart

Buy

12-Oct-05. COPEL has been in a strong uptrend for the past year that has intensified in the past months (see sidebar). After forming a base just below $7, it has now pushed above that.

  • Price momentum (PPO) — very strong and stable
  • Trend (ADX) — very strong
  • Money flow (CMF) — strong positive flow
  • Relative strength (RSI) — pulling back slightly after a long period of being overbought
  • Volume — average volumes increasing on heavy up-days

Sell

loss Bottom line
3%

19-Oct-05. I bailed out this morning from an excess of caution. ELP set another new high on Monday, but has pulled back two days in a row since. It could be a repeat of the pattern a couple of weeks ago when it first approached $8 (black rectangle on chart). On the other hand, it could be the start of a more severe pullback. It's been a while since it has touched up with the moving average. So, I'm going to take slim profits and see what happens.

ELP 1yr chart
ELP 1-year chart