Monday, November 7, 2011

Breakout signal in Brazilian Gol Linhas Aereas (NYSE: GOL)

Gol Linhas Aereas Inteligentes S.A. (NYSE: GOL) operates as a low-cost low-fare airline in Latin America.

Recently the major Brazilian airline TAM was pushed as a buy candidate by major bank research paper. However I like the price action in the minor airline and find the technical picture much more compelling. 

The chart shows a breakout signal confirmed by a close above 8 with an immediate target at 10.40 and risk below 7.5 which gives a reasonable risk management profile of the trade setup.