Similar to the move in Brazilian wireless provider NII Holdings (NIHD), the chart below shows a much improved technical position from the start of the year. Not only has the downtrend been broken, but the stock shows signs of breaking out to the upside. Looks like roughly a $1 higher at $7.5 will be the key resistance level.
With all the interest rate cuts in Brazil towards the end of 2011, it really shouldn't be a big surprise that Gafisa at the very least has regained momentum. Looks like much more room to run as well as the stock has only returned to mid November levels.
Stone Fox Capital holds an allocation of 3.9% in $GFA in his Opportunistic Arbitrage Investment Model
Disclosure: Long GFA. Please review the disclaimer page for more details.