Update: Long Brazil Running +26% (Bovespa At Record Highs)

Research Notes 01 - 05 Sept > https://www.unum.capital/post/r0105sept

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Previous Post (Sunday 19 January): Brazilian Equities Offer Relative Value + Will Benefit If Cyclicals Are To Rally

Why EWZ?

1. Exposure to large and mid-sized companies in Brazil

2. Targeted access to the Brazilian stock market

3. Use to express a single country view

Analyst's Price Action Model

Overall Strategy for iShares Brazil ETF (EWZ)

Combining the short-term, medium-term, and long-term trends, the overall outlook for the iShares Brazil ETF is cautiously optimistic. While the short-term trend is attempting a bullish reversal, the medium-term outlook is uncertain. The long-term trend, however, is showing signs of attempting to turn around after a period of strong selling pressure. This suggests that there might be potential for long-term upside, but investors should remain cautious in the near term.

Current 7-Day Trend: Strong

Current 14-Day Trend: Attempting a Bullish Reversal Following a Consolidation Phase

Short-Term Outlook (1 to 10 days): The short-term view points to a potential for a buy/long position as the 7-day trend is strong and the 14-day trend is attempting a bullish reversal. However, the recent consolidation phase suggests that caution is warranted.

Medium-Term Outlook (2 to 4 weeks): The medium-term outlook is uncertain, as there is no reading available for this time frame.

Long-Term Outlook (5 to 8 weeks): The long-term outlook is cautiously optimistic. The previously strong selling pressure is now attempting to turn around, suggesting potential for long-term upside. However, it is important to monitor the situation closely as the long-term trend is still developing.

Lester Davids

Analyst: Unum Capital