Brazil ETF (EWZ) Testing Resistance: Time to Take Profits?
📈 The ETF has reached a key resistance area after a recent upward move.
⏳ Momentum indicators (ADX) still show strength, suggesting the upward move might have more room, but confirmation is needed.
🔄 Two likely scenarios: a consolidation below resistance before a potential fall, or a break above resistance followed by a retest as support.
Brazil ETF Rising, But Still Trapped in Bear Trend
📉 Despite recent gains, the EWZ Brazil ETF remains firmly within a long-term bearish trend, with lower highs.
🚧 A key resistance level is identified around $27; breaking this level and the downtrend line is necessary to signal a potential trend change.
⚠️ While the ETF shows patterns for a short-term rise, entering now is considered risky due to the prevailing downtrend; confirmation of a break is advised.
Brazil’s Market Beckons: Is EWZ the Key to Latin American Growth?
📈 Brazil's market shows resilience and potential decoupling from US downturns, presenting a unique investment opportunity.
🗳️ Upcoming elections and potential political shifts in 2025 could provide a tailwind for Brazilian assets, currently seen as potentially undervalued after a significant drop in 2024.
💰 EWZ offers broad exposure to Brazil's potential but active management (like the discussed Patrimonio 7 fund) might outperform by selectively choosing stocks and avoiding weaker index components.
Brazil’s ETF (EWZ) Faces Resistance: Potential Downturn Ahead?
📉 The EWZ ETF is showing signs of resistance, both in terms of price and its moving average.
📈 Despite this, the minimums remain increasing, suggesting a possible consolidation around 25.5 to 26.
⚠️ The ETF is currently in a downtrend, and investors should be cautious about potential further declines.
EWZ vs. Merval: A Shift in Favor of Argentina?
🇧🇷 This chart compares Merval against EWZ (Brazil's stock market) to determine which is more convenient to be positioned in.
📈 From 2014 to 2019, they were lateral; after the 2019 PASO, Merval fell more and EWZ less. From 2022, Merval's bull market began, leaving EWZ far behind.
🤔 Since the beginning of this year, there's been a strong correction in favor of Brazil. After touching the 200-day moving average, it seems to have found a floor and rebounded, suggesting it might be more convenient to be positioned in Argentina than in Brazil, at least in the short term.
Brazilian (EWZ) and Chinese (FXI) Markets: Emerging Opportunities or Risks?
✅ Brazil (EWZ) and China (FXI) are seen as having good potential.
🚩 Brazil is more of a technical rebound; consider reducing exposure.
⚠️ China has stimulus policies that are not yet effective and is experiencing deflation.
