Brazil’s Cemig (Companhia Energética de Minas Gerais), a major electricity provider, is on a solid rising trend, backed by consistent purchase pressure until 2025.
According to local media outlet InfoMoney, following a brief pullback after reaching a record high of R$11.45 at the end of 2024, the stock fell to R$9.22 earlier this year.
From this low, the asset has demonstrated remarkable resiliency, rising 5.33% in May—its second consecutive positive month—and gaining 5.41% year to date.
Despite this steady trend, the previous trading session ended with a 0.64% drop, bringing the stock to R$10.84.
This pullback may indicate a short-term stop in the bullish trend, providing a potential respite following a strong run of rising advances.
Daily chart signals technical pullback with key resistance at R$11.03
According to InfoMoney, Cemig’s daily chart shows a bullish structure. Since recovering from its 2025 low, the stock has steadily risen, surpassing major moving averages and maintaining its position above them.
These technical signs point to underlying strength, notwithstanding the asset’s small decline.
CMIG4 is currently executing a decline, supported by the 9- and 21-period moving averages.
A break over R$11.03 would be an important indicator to restart upward momentum.
If this resistance is overcome, the asset may retest its record high of R$11.45.
Beyond that, bullish estimates indicate intermediate objectives between R$11.76 and R$11.94, with longer-term potential reaching R$12.35 and R$12.50.
However, if the correction worsens, look to the moving averages around R$10.74 and R$10.49.
A breach below these support levels might take the stock towards the 200-period average of R$10.25.
Further downside targets are R$10.07, R$9.57, and R$9.22, the year’s low.
Medium-term trend remains upward, but signals suggest caution
On the weekly chart, the medium-term prognosis is optimistic.
After peaking at R$11.45 and falling to R$9.22, Cemig recovered support and resumed its rise amid increased purchasing activity.
The stock has now risen for three weeks in a row, approaching previous highs.
Despite the positive trend, last week’s candlestick shape suggests a cautious perspective.
The pattern shows that the rally may have reached its limit, which could signal the start of a short-term correction.
If this happens, the initial negative targets are the weekly moving averages of R$10.38 and R$10.12.
A loss below the previous week’s low of R$10.72 would be an early indicator of fading bullish momentum.
In contrast, a clean breakout over the R$11.03 resistance level would affirm the continuance of the positive trend.
In that case, R$11.45 would be the immediate aim, with possible expansions to R$12.15 and R$12.50.
Longer-term technical estimates even point to R$13.25 and R$13.60, if the existing structure remains unchanged.
Below R$10.12, the next key supports in a bearish scenario would be R$9.22, R$8.40, and R$8.09—levels that would only come into play if the trend shifted substantially downward.
For the time being, the overall medium-term structure remains optimistic, with no clear indicators of a reversal.
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