September 6, 2016

Stock Alert and Chart Analysis: EWZ

Disclosure: I own EWZ in a retirement account.

  In these stock alert and chart analysis posts, I want to point out a security that has a very interesting chart and/or serious buzz in the social media sphere or mainstream media.

  To help understand these alerts and chart analyses, consider checking out how I perform technical analysis here and how I trade breakouts here.

  Okay, back to the good stuff!

Stock: EWZ, iShares MSCI Brazil Capped.

Long-term Weekly Chart Technical Analysis:

EWZ is in a strong bull trend and is starting this week pretty bullish.  However, there is still 3 days of price action left in this weekly candle and EWZ is at resistance right now. EWZ could go so many ways right now so deference is paid to the current trend: bullish. Until that up-trendline starting in January is broken, EWZ is a long, not a short.

Long-term Gameplan:

EWZ is in a strong bull trend so longs have the odds. There is no evidence of this trend changing yet so I am a buyer of decent dips like to the trendline.

Short-term Daily Chart Technical Analysis:

EWZ is testing MTF resistance and could breakout from here. However, a close today at MTF resistance would be worth a short because sellers have the odds. On the other hand, longs could trap shorts if EWZ can close strongly beyond $35. Today and the next couple days are key to seeing how much conviction buyers have.

Short-term Gameplan:

Watch for failure or success at this new high area. A strong breakout likely indicates higher prices. Conversely, a weak breakout may indicate a failed breakout. Remember, "From failed moves come fast moves!"

What are your thoughts? Let's discuss it in the comments below. Remember, "Two heads are better than one!"


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