Fairly high probability we see the Bovespa index trade to the downside. This is a great trade because it presents us with multiple opportunities if the stop gets triggered (with a close on the weekly time frame).
Pay Attention to the correlation between USDBRL and Bovespa Index - extremely important as Brazil´s equity market has proven to be extremely sensitive to its currency (for now). Notice Brazil trades lower when BRL weakens ' quite the opposite with other markets, such as the Nikkei and the Yen.
If we see the 3.20´s get hit while the reaching resistance in the Bovespa it should indicate a great entry. (Though this is usually unlikely to occur at the same time.)
Pay Attention to the correlation between USDBRL and Bovespa Index - extremely important as Brazil´s equity market has proven to be extremely sensitive to its currency (for now). Notice Brazil trades lower when BRL weakens ' quite the opposite with other markets, such as the Nikkei and the Yen.
If we see the 3.20´s get hit while the reaching resistance in the Bovespa it should indicate a great entry. (Though this is usually unlikely to occur at the same time.)
Comment:
Break below neckline ...
Comment:
Entry 1 probably coming soon. Be prepared.
Comment:
Have not yet activated any short entry. I actually see a bullish outcome coming out of this now.. Nevertheless, I will chip in for a small short position at 57300. The risk is extremely low and price is likely to react at 57300. I will take quick profits on any downside move.
Trade active:
Short active at 57300
Comment:
I AM NOW VERY BULLISH ON THE BRAZIL INDEX