Can The iShares MSCI Brazil Index Overcome The 30.00 Mark?

Can The iShares MSCI Brazil Index Overcome The 30.00 Mark? | Technical Analysis

The technical picture of the iShares MSCI Brazil Index (NYSEARCA: EWZ) on our 4-hour chart shows that from the beginning of this week, the price has been drifting mainly to the upside. That said, the uprise got halted yesterday near the psychological 30.00 mark. In order to continue aiming higher, we would prefer to wait for a break above that mark first, hence our cautiously-bullish approach for now.

If, eventually, the psychological 30.00 barrier surrenders to the bulls, the EWZ might continue with its journey north. The index may then aim for the 30.40 obstacle, a break of which could clear the way to the 30.97 zone, marked by the high of September 18^th, where the price might stall for a bit. It may even correct slightly lower, however, if the index stays somewhere above that key 30.00 hurdle, the buyers could step in again and drive EWZ higher. A strong move through the previously mentioned 30.97 area may help the bulls to lift the price to the 31.42 level, marked by the high of September 16^th.

The RSI is currently a bit flat but remains above 50. The MACD is comfortably sitting above zero and its trigger line, while continuing to point higher. So far, the two oscillators are showing positive price momentum, which supports the upside scenario.

Alternatively, a move back down and a drop below the 29.22 hurdle, marked by the low of November 5^th, could temporarily spook the bulls from the field and allow more bears to join in. That move may also place the index below the 200 EMA, which could also be seen as a bearish indication. If more sellers join in, this might bring EWZ to the high of November 4^th, at 28.63, a break of which may open the door for a move to the 27.88 area. That area is marked by the high of November 3^rd.

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. 72.57% 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 2020 JFD Group Ltd.