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.
Analyst: Victor Campos, CFA.
Source: LATAMPM with Tradingview.com data. Prices as of March, 6, 2016.
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