jueves, 30 de octubre de 2014
Brazil ETF may be ready to kick recent lows
The Brazil ETF (EWZ) has generated 5 bullish moves from the February lows of $38 back up to $54.60 last August and from there a strong selloff took the index back down to that same $38 low.
But now an uptrend may be in play and to fuel a possible uptrend, the actual lows of $38 need to find support. Once we see immediate bullish movements toward $42.20 then $44.60 will follow--with $48.40 as a key medium-term resistance for the EWZ near the 61.8% fibonacci of the entire selloff.
A break above those resistances will enable further progress toward more ambitious forward values.
However, with a break below $38, the mentioned increases will remain postponed and leaving the 5 bullish movements canceled, as the EWZ will remain vulnerable to further losses toward $37.50-$37.00 without discarding a bearish continuation toward more depressed values, continuing the bear market initiated in 2011.