CIG Breakout Alert: Deep Value Energy Play with 9% Upside Potent

⚡ 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