The MSCI Brazil ( EWZ ) rode that wave higher at the time but has fallen flat more recently. Weakening of energy prices and a spreading coronavirus outbreak in the Latin American nation has also made matters worse.
This has produced a for the , with a series of lower highs since June 8. Downside support is around $28.50.
This creates the potential for continuation if the lower price level is broken. Timing is unclear, and there could be some tests above $29.50 to the falling trendline.
However, the overall setup could be interesting because EWZ has potential downside toward the low $20s if the current breaks.