⚡ 
CIG Trade Setup
Energy Company of Minas Gerais presents a rare combo of extreme undervaluation + technical breakout. Here's why it's on my radar:
📌 Trade Levels
▶ Entry: $1.88 (confirmed breakout)
🎯 Target: $2.05 (+9%)
🛑 Stop Loss: $1.82 (-3.2% risk)
⚖️ Risk/Reward: 1:3
Why CIG?
✅ Dirt Cheap Valuation:
P/E 4.28 (vs sector avg 15x)
P/S 0.15 (93% below sector)
P/B 0.19 (trading below book value)
✅ Technical Triggers:
Breakout above $1.85 resistance
Bullish MACD crossover
RSI 55 (neutral momentum)
Volume spike on breakout
📊 Sector Tailwinds:
Rising energy demand in Brazil
Dividend yield potential (historically ~5%)
Institutional accumulation (+12% last quarter)
Trade Management:
Entry: $1.88 (market price)
Adjust Stop: Move to breakeven at $1.90
Partial Profit: Take 50% at $2.00
⚠️ Key Risks:
BRL currency volatility
Regulatory changes in Brazilian utilities
Low liquidity (avg volume 2.75M)
#ValueInvesting #EnergyStocks #Breakout
CIG Trade SetupEnergy Company of Minas Gerais presents a rare combo of extreme undervaluation + technical breakout. Here's why it's on my radar:
📌 Trade Levels
▶ Entry: $1.88 (confirmed breakout)
🎯 Target: $2.05 (+9%)
🛑 Stop Loss: $1.82 (-3.2% risk)
⚖️ Risk/Reward: 1:3
Why CIG?
✅ Dirt Cheap Valuation:
P/E 4.28 (vs sector avg 15x)
P/S 0.15 (93% below sector)
P/B 0.19 (trading below book value)
✅ Technical Triggers:
Breakout above $1.85 resistance
Bullish MACD crossover
RSI 55 (neutral momentum)
Volume spike on breakout
📊 Sector Tailwinds:
Rising energy demand in Brazil
Dividend yield potential (historically ~5%)
Institutional accumulation (+12% last quarter)
Trade Management:
Entry: $1.88 (market price)
Adjust Stop: Move to breakeven at $1.90
Partial Profit: Take 50% at $2.00
⚠️ Key Risks:
BRL currency volatility
Regulatory changes in Brazilian utilities
Low liquidity (avg volume 2.75M)
#ValueInvesting #EnergyStocks #Breakout
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.