Looking at the technical picture of the iShares MSCI Brazil ETF (EWZ) on our daily chart, we can see that it had recently broken above a medium-term downside resistance line taken from the high of June 25th. The ETF hit a new high for January, reaching the area near the 30.65 hurdle. The price is currently balancing above the 21-day and the 50-day EMAs. Although there is a good chance of seeing a further move north, we would prefer to wait for a break above that 30.65 hurdle first, before targeting higher areas.
A push above the 30.65 barrier would confirm a forthcoming higher high, potentially opening the door to the 31.84 obstacle, or even the 33.39 zone, marked by the highest point of October 2021. EWZ could get halted there for a bit, but if the buyers remain strong, they might send the price towards the 34.17 level. That level marks the high of September 23rd.
The RSI is currently pointing slightly lower but remains above 50. The MACD continues to run above the trigger line, while sitting above zero and pointing higher. In combination, the two oscillators show positive price momentum and support the idea above.
Alternatively, if the price falls all the way back below the 27.98 hurdle, marked by the inside swing high of January 11th, that would place the ETF back below all of its EMAs, which could be seen as a bearish sign. EWZ might then travel to the current lowest point of January, at 26.47, a break of which would confirm a forthcoming lower low. That’s when we will aim for the 24.97 level, which is the inside swing high of May 21st, 2020.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.02% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.