Brazil is known for nice beaches, women and carpirinhas.
The beautiful Christ the Redeemer is placed high above Rio.
Raging high is also the price of EWZ which is stretched more than 30 % above its 200 DMA.
It has reached 1.618 of its previous intermediate top and it is due for an intermediate cycle low correction soon.
It has met a big resistance level and its...
On daily chart, it's 3rd day outside from the upper Bollinger Band. It means a calling for a interesting correction.
On hourly chart, an overbought is present on RSI & Stochastic. MACD & Histogram shows a little weakness.
On hourly chart, its target in 10.75 from a triangle breakout has been reached.
It has been stalled for 7 weeks, MACD turns negative and RSI rising wedge breaks. Price is still holding well but I am watching the blue support line carefully.
Overall up trend is intact given the rising 40 week moving average, any drop less than 20% should be seen as a healthy correction and should be bought given the up trend bias.
Here, I'm just looking to sell a little premium in the highest implied volatility, broad market underlying there is out there at the moment -- the Brazil exchange-traded fund, EWZ. The Olympics, after all, are over, and no doubt body parts will be washing up again soon on Copacabana beach, PBR will be undergoing yet another corruption/fraud/you-name-it scandal,...
For whatever reason, Russia is not tied to oil price from the technical analysis point of view, could it be geopolitical issue at play? A Trump win in Nov could lift the sanction? I don't know.
Nonetheless, RSX is poised to run toward 21
EWZ finished the month with a strong tone, made a higher high, issued a long term buy signal ( based on 5/10 MMA cross).
Technicals favor a bullish case.
HI,
This Fund can still pay a lot of money in the next months and years by the drop.
A new spike on EWZ could give a good trading opportunity. very interesting.
I am trader of profiting.me
Thank you
Girolamo Aloe
The price seems to build an H&S pattern, not very perfect in shape. A strong support to break is the 27$ level. Look for a breakout confermation in that level for shorting opportunities. Possible target 23$ level. Risk reward ratio 4,7. Possible gain 14,9%.
Going to where the volatility is to sell premium, and that's in EWZ (implied vol rank >70/implied vol is >50). (Plus, I'm kinda ticked that I screwed up closing out that rolled EWZ setup without checking the trade chain ahead of time ... ).
In any event, here are the metrics for the setup:
Probability of Profit: 74%
Max Profit: $66/contract
Buying Power Effect:...
EWZ had a golden cross (10 week MA above 40 week MA). And it appears to be closed above the blue resistance (a small breakout?) RSI and MACD all broken out.
