Companhia Paranaense de Energia - COPEL (ELP)

Company

ELP 1-year chart ELP 1-year chart

"Copel is the largest company in Paraná; it has 3.38 million consumers, covering virtually 100% of homes in urban areas and 90%, in rural areas. Connected consumers include 2.6 million homes, 58,000 industries, 281,000 commercial establishments and 331,000 rural properties. Copel makes an average of 70,000 new connections every year." (company website)

ELP 6-month chart
ELP 6-month chart

Sell short

18-Aug-08. Earlier this morning I sold my lot of ELP at a small loss, having realized that — if my new strategy is right — I had made a mistake. In a show of confidence (bravado?) I have turned around and sold a lot short.

  • Price momentum (PPO) — divergence between the PPO line and the signal line is increasing, a distinctly bearish signal

Based on technical analysis, MarketEdge changed its recommendation on ELP to "neutral from long" and notes the "strongly deteriorating conditions."

Buy to cover

gain Bottom line
2%

22-Aug-08. Watching ELP's PPO line start to converge, along with rallies every day made me nervous and I decided to cover the short. ELP may drop some more, but the crossover was quite a while a go and I wanted to be on the safe side.