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Brazilian ETF: Descending Triangle for Latin American Nation

Short
AMEX:EWZ   ISHARES INC
Global stocks had a nice bounce in early June, outperforming the S&P 500 by a wide margin as the “reopening” trade took hold and the Federal Reserve kept the spigots of easy money flowing.

The MSCI Brazil ETF ( 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 descending triangle for the ETF , with a series of lower highs since June 8. Downside support is around $28.50.

This creates the potential for bearish 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 support level breaks.

Comments

Hello good day!
But I think that support prices at EWZ is 25.76 ...
if lose that price level, will seek the lowest value of 21.39.
We have to wait.
Good analysis.
Reply
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