We can clearly see the iShares MSCI Brazil Index ( )(NYSEARCA:EWZ) is retesting a major out, with the 200 day moving average just below the . This could serve as minor short term support. However, the chart has begun to consolidate right at the line, without getting any significant bounce, as of now. The longer price remains around this level, the more likely the iShares MSCI Brazil Index ( ) (NYSEARCA:EWZ) are to break down.
If this is broken the iShares MSCI Brazil Index ( )(NYSEARCA:EWZ) will fall quickly. A major where the shares will find buyers is $42.49.
If the level mentioned ($42.49) happens to be hit towards the end of the World Cup, and Brazil is still in the tournament, then the EWZ will rally (among other factors) in part as a result of Brazil winning the 2014 FIFA World Cup from this level of support.
That is my prediction based on the charts... please feel free to comment and make your own predictions, let us know if another chart is telling you who will win the 2014 FIFA World Cup! I would love to hear your thoughts, feel free to comment on our google+ page, our facebook fan page or tweet at me. As always, myself and the other Pro Traders of the Elite Round Table will be providing our members with the detailed trades, live when they happen... join us now!
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