Technical Analysis of Financial Markets

Saturday, February 23, 2008

iShares MSCI Brazil Index (EWZ)

Between August 2007 and January 2008, the iShares MSCI Brazil Index rallied 80% within a 5-month period. Since the sell-off in early Janaury 2008, price action has rebounded but has remained beneath the underside of the broken trendline; forming a triple-top formation with resistance at $85. An entry into a short position with a stop-loss on close above $85 may serve as a low-risk trade.

No comments: