Brazil Bovespa Technical Analysis – March 6, 2016

Bovespa.     Date: Mar/6/2016

Brazil’s benckmark market index has been in a long-term downtrend since June 2010, nevertheless last week’s movement broke a short term downtrend and took the most recent lower high, which indicates a potential change of trend.

As a rule of thumb, when there is a break of an inner trendline prices tend to move to the outer trendline.

In the short term, we will be looking for a buy signal around the 44,948 level which is an important long term support in confluence with the back of the broken downtrend.

Chart 1.

20160306-BVSP W

Chart 2.

20160306-BVSP D

Analyst: Victor Campos, CFA.

Source: LATAMPM with data. Prices as of March, 6, 2016.


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