'A perfect storm' in Brazil ! Adam and Eve double bottoms confirmed, we're trading for the gap fill @ 26.5
BZQ
Brazil$EWZ $EWZS $BRZU $BZQ I'm expecting more pain ahead for EWZ, Brazil market etf. No rule that says it's going to drop from here but I will be much more interested in going long if it drops to that lower trend. I'll be patient on this. Blue line is USOIL.
Brazil is at make or break levelsWill either rocket downward after breaking resistance or rebound here. Fundamentally, this looks to be more negative based on what is happening in the world of currency.
Short idea (Brazil ETF)A break under 30.98 would be a new 2 year low. Leverage via $BZQ (2x bear ETF)
BZQ- Long at the break of 17.37 to 20.50 areaBZQ looking interesting as it seems forming a fallen angel pattern. It crossed above EMA lines with high volume. We think it will go up now & our first target is 20.50 area.
You can check our detailed analysis on BZQ in the trading room/ Executive summary link here-
www.screencast.com
Time Span: 35"
Trade Status: Pending
Sell Brazil el ritmo caliente, Long setup for Bearish BZQ ETFSell Brazil el ritmo caliente, Bullish setup for BZQ ETF
ProShares UltraShort MSCI Brazil Capped BZQ seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the MSCI Brazil 25/50 Index®.
Volumes great as never. Initial targeted tp 28+
Bovespa Symmetrical Downtrend Moves Back to a 1.618 Extension.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 extended further than the previous downward moves (indicated by the dashed blue trend lines) and did not fully retrace back to its 1.618 extension of the larger trend. Instead it only retraced back to the .786 fib line and again made a downward move extremely similar to past downward moves (again indicated by the dashed blue lines.) It may be forming a double bottom, especially if it finishes out its symmetrical downward trend line, which is about where it’s at. If this is the case, expect a move again back to its 1.618 retracement. This mark is also important as it overlaps the much larger downward trend that started back in November of 2015. These retracement lines overlap almost perfectly and is indicates strong resistance.
Target Price: is 55975-56007 by early to mid-June. I would actually rate this quite conservative as the upward extensions seem to happen in a 5-ish day time cycle sometimes followed by a week of slowly moving bullish trends indicating indecision.
Make sure to give it time to play out its double bottom which Should be slightly higher than its first bottom of 49907.77 and be sure to use a smaller time frame chart for your entry. To play this index I may use a leveraged ETF like BRZU.
Please Like and share and follow for future symmetrical and perhaps non symmetrical analysis.
Thanks!
