Brazil Bovespa Technical Analysis – April 4, 2016

Brazil Bovespa. April, 04, 2016


The Brazilian equity market index has moved close to the trendline that extends since September 2014, boosted by the recent bullishness for risky assets caused by a more dovish Fed.

Nevertheless, it has developed a bearish setup conformed by 1) a bearish divergence, marked by higher highs in price action not followed by the RSI index that is forming lower highs at an overbought level, 2) confluence with the 61.8% retracement of the last swing started on May 2015, and 3) an evening star in the direction of the long term and medium term trends.

Based on these facts we are looking to be sellers at market with a price target around 45,168 and a stop loss at 52,416 as depicted in the daily chart for a reward to risk of 2:1.



BOVESPA 040416

Analyst: Victor Campos, CFA.

Source: LATAMPM with data. Prices as of April, 1, 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.