EWZ could retest February highs.
In general, the iShare MSCI Brazil Index (NYSE: EWZ, Bullboard) exhibits a VERY constructive intermediate-term chart pattern. All of the price action off of the January low at 64.00 represents the start of a new upleg within the existing longer-term bull trend that started in 2002 near 5.00. Furthermore, the decline off of the February 28 high at 88.77 to the March 20 low at 72.11 appears to me to be a completed pullback, and the start of a new upleg that projects to retest 88.00-81.00 on the way to 91.00-93.00. Let's notice how much respect the price structure (investors) has exhibited during tests of the sharply rising 200 DMA. As we speak, my work argues that investors are about to show a high degree of respect for the sharply rising 20 & 50 DMAs, which could propel the EWZ to retest the February highs. Of course, some help from some of the other global equity markets (like the US) certainly will be supportive, but not absolutely necessary for the EWZ to continue higher. For starters, the EWZ has to hurdle 85.20/30 to trigger upside acceleration.
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