I see a decision region for the IBOV for the short term (less than a month). The breakout of this triangle shaped figure will determine the direction the index will take for longer terms.
The Bovespa has been forming a symmetrical downward trend followed by a 1.618 extension of the longer bull trend. You can see this in the chart by the first light blue fib retracement, and then I used a green arrow to indicate where the second retracement line is compared to the green 1.618 retracement line. The second to last move down is a bit tricky as it...
Trend changing? Look for 48K, then for 47K supports. Brazil´s fundamentals are critic just now. Major firms are overpriced. There are some of them that are cheap, but it is a hard mining job. Technical surprises loom over their heads. Volatility is very high.
The weakening of the Real will likely bring further losses in this index. A strengthening of the Real will continue to bring gains in the Bovespa index.
See correlation in chart below. It's been statistically significant for 16 years, and is ongoing.
Well, a lot of stuff is going on here on Brazil, Political uncertainty and Economics fundamentals are terrible. The government, for sure, is being a problem more than a solution. But despite that i still believe in a good 2016 from here, based on this analysis and other analysis of major stocks that compose the index.
Resistence at 49,175; support at 43,845. Look for politic affairs. Once the impasse is broken the market will trend up. Wait for 3 months and monitor the IBOVESPA trend.
Gartley (blue triangles) has completed with profit targets as indicated by the green lines.
This could potentially run into a completion of a cypher pattern .
Sell the Ibovespa now, and if it reaches there, buy at 40,000.
The Brazilian economy Bad in the world news bad for investors , at the moment so just wait a bit till around the end of 2016 - 17 when they hungered out .
This situation is a reflection of the FED decisions about keeping the interest rate and not increase it . Brazil proved to be a good opportunity. What do you think about that?
