SABESP: Are investors expecting bad 2020 results on March 25?
TECHNICAL ANALYSIS
RSI-14 is almost going under 30-level boundary (change in trend is expected once this happens, what means going from downward to upward trend)
In the last week, sell volume has increased, specially on February 18 and 19.
Key support at 5.55-5.65
Besides, SBS is closing a triangle which could foster some volatility in its share-price.
FUNDAMENTAL ANALYSIS
Expected EBITDA 1577 and EPS 1.13
If results are better than expected, SBS will go up to test resistance level 12.34. If they are worse, then it could test next support level at 3.49.
In the meantime, it may look like investors are discounting bad 2020 results once they are issued in March 25. This psychological mindset may drag the price towards first support level at 5.55-5.65.
NEWS ANALYSIS
Bad news from SABESP: review of tariffs delayed until March 10
Last 9th of February, SBS announced it but now it looks like it's going to take more time. However, final results will still be issued on April 9, 2021.
XP Investimentos is optimist with the terms presented as they contain a positive calculus for SABESP.
SABESP incurred in emergency maintainances in Itaquaquecetuba, accidentally destroyed a gas pipeline in Taboão da Serra on February 19th and is now making some reforms in the mysterious Parque Sabesp Mooca (aka Parque Radialista Fiori Gigliotti) which was opened to the public in 2014 and most part of its 21200 m² are off-limits and no one knows why.
CONCLUSIONS
SBS may touch key support at 5.55-5.65 which means a buy in my opinion and then, once results are issued, if they are better than expected (or not that worse as expected), long-term perspective for the stock is bullish.
RSI-14 is almost going under 30-level boundary (change in trend is expected once this happens, what means going from downward to upward trend)
In the last week, sell volume has increased, specially on February 18 and 19.
Key support at 5.55-5.65
Besides, SBS is closing a triangle which could foster some volatility in its share-price.
FUNDAMENTAL ANALYSIS
Expected EBITDA 1577 and EPS 1.13
If results are better than expected, SBS will go up to test resistance level 12.34. If they are worse, then it could test next support level at 3.49.
In the meantime, it may look like investors are discounting bad 2020 results once they are issued in March 25. This psychological mindset may drag the price towards first support level at 5.55-5.65.
NEWS ANALYSIS
Bad news from SABESP: review of tariffs delayed until March 10
Last 9th of February, SBS announced it but now it looks like it's going to take more time. However, final results will still be issued on April 9, 2021.
XP Investimentos is optimist with the terms presented as they contain a positive calculus for SABESP.
SABESP incurred in emergency maintainances in Itaquaquecetuba, accidentally destroyed a gas pipeline in Taboão da Serra on February 19th and is now making some reforms in the mysterious Parque Sabesp Mooca (aka Parque Radialista Fiori Gigliotti) which was opened to the public in 2014 and most part of its 21200 m² are off-limits and no one knows why.
CONCLUSIONS
SBS may touch key support at 5.55-5.65 which means a buy in my opinion and then, once results are issued, if they are better than expected (or not that worse as expected), long-term perspective for the stock is bullish.