Companhia Paranaense de Energia - Copel (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)

Sell short

20-Nov-06. I made a little money off ELP when it was going up, and I now hope to make some more when it goes down. The further price increase that I thought was possible has not materialized, and signs are that the stock is going the other direction.

• Price momentum (PPO) — slowing steadily
• Trend (ADX) — very weak, and selling pressure (-DI) is well above buying pressure (+DI)
• Money flow (CMF) — hovering around neutral
• Relative strength (RSI) — weakening steadily
• Volume — big volume on breakdown through 50-day moving average

Sell

27-Dec-06. I decided to cover my position in ELP today after it opened up and continued to rise. I was tempted to convince myself that, considering the very low volume, today's jump was merely Santa Claus enthusiasm, but in the end, I lacked the nerve to put that possibility to a test.