JULY, 2009
Msci Brazil (EWZ) recently raised above the main bearish resistance line at $51.00 switching officially to bullish mode. Since May 08 double top at $102.00 prices started declining sharply until the breakthrough of the main bullish support line at $86.50 on early June 08 changed the overall outlook to bearish. The downtrend, which was defined by a customary pattern of lower highs and lower lows, found initial support at $68.00 where a corrective up move evolved pulling back prices to $75.00 before resuming the contraction.
The second corrective up move emerged from support at $51.00 and touched $65.00 where a Long Tail Down pattern halved the value reaching $38.00. The Low Pole pattern that developed after the final November 08 sell off to $27.00 projected an upside target set at $55.50, a level reached just recently. After trading sideways for almost 6 months prices penetrated the key resistance line at $41.00 on the end of March 09 clearing the way for additiona....
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