Will owning Banco Santander (Brasil) S.A. ADR (NYSE:BSBR) amount to something?

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Shares of Banco Santander (Brasil) S.A. (NYSE:BSBR) are currently poised at 1.03% from the open today and are trading at $8.87. More than 4,107,200 shares have exchanged hands compared to an average trading volume of 3.70M. At the current pps, the market cap stands at $32.68B. The stock prices of Banco Santander (Brasil) S.A. (NYSE:BSBR) are currently trading at -24.51% below its 52 week high and 97.50% above its 52 week low.

Banco Santander (Brasil) S.A. (NYSE:BSBR) has been in the news for all the right reasons.

Investors in shares of Banco Santander Brasil SA BSBR need to pay close attention to the stock based on moves in the options market lately. That is because the Call which expires on Apr 21, 2017 for the $7.50 strike price had some of the highest implied volatility of all equity options today.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 8% Sell with a Weakening short term outlook on maintaining the current direction. Longer term, the trend strength is Minimum. Long term indicators fully support a continuation of the trend.

Banco Santander (Brasil) S.A. (NYSE:BSBR) is all set to announce its earnings on May 03. As per Zack’s analyst ratings, Banco Santander (Brasil) S.A. (NYSE:BSBR) currently has an average brokerage rating of 4.67. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NYSE:BSBR) is $5 with a high of $6 and a low of $4.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). Currently, the 5 day EMA 8.57 is lower than the last trade price suggesting a short term bullish pattern building up. Long term, the 50 day EMA 8.95 is higher than current trading price depicting a bearish pattern.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 57.16 suggesting a bullish price action.

As such, while we believe Banco Santander (Brasil) S.A. (NYSE:BSBR) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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