LWSA3: After rising 51% in May, what can you expect from Locaweb’s stock?

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Locaweb’s actions (LWSA3) rose an incredible 51% in May, leaving the company with the second highest Ibovespa appreciation in the period, second only to Yduqs (YDUQ3), which advances 70%.

Thus, the company’s shares reversed the annual losses, going on to obtain gains of 13.6% in the accumulated of 2023. This Thursday (25), the company’s shares rose 7.4%, ending up listed in R$ 7.91.

The downward movement of future interest rates (DIs) and the results of the first trimester helped in the performance of the roles – after the results, the actions of the Locaweb increased 12%.

Given this scenario, see what technical analysts expect of the company’s stock, based on performance through May 24.

LWSA3: Technical Analysis

For Matheus Lima, Top Gain analyst, in the short term, the company’s shares show a strong upward movement, after having had a downward trend between the months of November 2022 and March 2023.

Exactly in March of this year, Locaweb’s shares made a double floor in the region, from R$ 4.40, and began an upward movement.

Thus, the shares broke the LTB (downtrend line) and reversed it, seeking, in the short term, its target at the BRL level. 9.19which is the “amplitude projection from below to the resistance, projected to the top”.

“It is worth mentioning that we have a relevant ceiling, in R$ 8.94a point at which the price may have a hard time breaking out,” Lima added.

Locaweb daily chart (short term)

In the medium term, highlights Lima, the shares of LWSA3 have been working, however, in a lateralization, “with a good amplitude of movement, respecting the resistance in the BRL range 11.30 and its support in the R$ region 4.40“.

“At the moment, we can see that the price broke the previous ceiling of R$ 6.78, and you are trying to break out of the 50% range of this trading range. If this break is confirmed, the shares may reach resistance to this lateralization ”, she analyzes.

Locaweb weekly chart (medium term)

Meanwhile, in the long term, it indicates that the projection remains the same as in the medium term.

“However, if the shares breach the BRL 11.30we can have confirmation of a double bottom, with the objective of actions in the R$ region 18.30. If there is no breakout, we still view it as lateralization and can retest BRL support. 4.40″, Lima added.

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Locaweb weekly chart (medium term)

In the opinion of Régis Chinchilla, an analyst at Terra Investimentos, in the short term, LWSA3 tries to confirm the break of the resistance at the moving average (200 days) and continue the upward movement, with targets in BRL 8.30 and BRL 9.00; with supports in BRL 7.10 and BRL 6.70.

Daily chart (short term) LWSA3

Regarding the medium term, Chinchilla understands that the daily chart (see below) confirmed the breakout of the W “double bottom” formation. However, in the longer term, the weekly chart (lower) is still “still in the phase of building a fund to sustain a stronger recovery movement”.

Daily chart (medium term) LWSA3

Weekly chart (long term) LWSA3

uptrends

In the evaluation of the CEO of Harami Research, Alexandre Milen, the short-term trend of the asset is bullish. “This is demonstrated by the narrowing of the Bollinger bands on the daily chart (see just below), with prices moving in the upper band with crossed moving averages to buy, resistance break in BRL 6.80 and the ADX index pointing to an uptrend.”

Locaweb daily chart

Looking to the medium term, the trend is also up, given the breakout of an LTB in May 2023. This led to the narrowing of the Bollinger bands on the weekly chart (see just below), “with prices moving in the upper band.” . and resistance break in BRL 6.80with prices projected to reach R$ 10.00.”

Locaweb weekly chart

In the long term, Milen points out that, despite not having much long-term chart history, due to the recent IPO, it is possible to analyze that the asset does not have a defined trend, with prices moving between R$ 4.50 and BRL 10.00.

LWSA3: stock trend blur

Finally, for Enrico Cozzolino, Levante’s head of analysis, even with the recent valuations that Locaweb has had in recent weeks, its primary and long-term bearish trend prevails.

Meanwhile, in the medium term, he assesses, there is a lack of trend definition, “with price support regions well defined on the chart, but with random tops, showing a lot of uncertainty.”

LWSA3: Daily chart

For Cozzolino, in an optimistic scenario, Locaweb’s price should remain above the 200-period average, according to the line drawn on the daily chart. (look up), forming a top and bottom over this region.

On the contrary, in a pessimistic scenario, the price would return to the price uncertainty range, which is resisted by the BRL. 7.90 and support at historical lows, in BRL 4.60.

Levante is supported by prices of R$ 5.65 (1) and BRL 4.60 (2) and BRL resistance 7.90 (1) and BRL 8.70 (two).

LWSA3: Weekly Chart

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