Brazil ETF may be ready to kick recent lows

By Julian Yosovitch

October 29, 2014 • Reprints

http://www.futuresmag.com/2014/10/29/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.