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 Tradingview.com data. Prices as of March, 6, 2016.

 

DISCLOSURE: The analyst or analysts responsible for this report may or may not have direct or indirect positions on the stocks and securities mentioned before, as of the date or after publishing. This report is for informational purposes only, based upon publicly available information. Accuracy and completeness of the information cannot be guaranteed. LATAM PM is not in any way be liable for claims related to this report. The information and analyses may not be suitable for your specific circumstances. Each investor shall make their own determination of the suitability of an investment of any securities referred to in this report.