Latam, much like the rest of EM, does not seem ready to break out yet and has failed to break the downtrend in place since '08. However, the up leg from March '20 to Jun '21 seem to be and impulse wave of what could be Wave I or the beginings of a spectacular rally in the years to come if a new commodity supercycle keeps going. ILF is currently correcting and likely to see lower levels in the short term, but the area of $19.50 to $24 could prove to be a good acumulation zone to position for the years ahead.
Comment:
As we suggested 6 months ago. ILF corrected to the $19.50 to $24 area that we indicated as an accumulation zone and is back up testing the downtrend (blue line). A break could signal the start of the multiyear upmove that we expect to take place when it finally breaks.
