Companhia Energética de Minas Gerais (CIG-C) Formed Bearish Wedge Down Chart Pattern; Sellers Are Thriving

July 13, 2018 - By Nellie Rakes

Companhia Energética de Minas Gerais (NYSE:CIG.C) Logo

The stock of Companhia Energética de Minas Gerais (CIG-C) formed a down wedge with $1.79 target or 3.00 % below today’s $1.85 share price. The 5 months wedge indicates high risk for the $2.83 billion company. If the $1.79 price target is reached, the company will be worth $84.99 million less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock increased 5.11% or $0.09 during the last trading session, reaching $1.85. About 3,325 shares traded or 12.33% up from the average. Companhia Energética de Minas Gerais (NYSE:CIG.C) has declined 12.66% since July 13, 2017 and is downtrending. It has underperformed by 25.23% the S&P500.

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company has market cap of $2.83 billion. As of December 31, 2017, the firm operated 117 hydroelectric, thermoelectric, and wind plants with an installed capacity of 5.7 GW; 38 substations and 4,927 km of transmission lines; and 529,873 km of distribution networks and 17,301 km of distribution lines. It has a 9.34 P/E ratio. It is also involved in the natural gas distribution; sale and trading of electricity; energy and technological solutions businesses; provision of telecommunications and data center service activities; and operation of solar energy plants.

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