Ichimoku Update: Brazil approaching Major Support

Ichimoku Update: Brazil approaching Major Support.  On May 9, 2016, we gave a full analysis of the Brazil Stock market due all the political stuff going on there.   Here is the article:  https://www.ichimokutrade.com/c/?p=10395

Let’s do a technical update on everything now.

Below is the Monthly chart provided by eSignal.    You can see you had a huge upward movement that stopped at the bottom of the cloud.  The cloud resistance was 54035 which is now a major long term resistance.

2016-06-02_brazil_m

 

Below is the weekly time frame.   Price is back in the cloud and slowly heading to the support of 47841 which we outlined last month.     Once it gets there, we will examine the lower time frames to determine if it breaks this support or not.    If we get signs of it holding, we will exit the Brazil ETF long put option.   If not, we will keep the long term ETF position,

2016-06-02_brazil_w

 

Below is the daily time frame.  Price is going through the cloud to get to the support which is very close to the bottom of the cloud.   The daily confirms how strong the support is at 47841.  If it breaks that support, the daily will change to a bearish sentiment after it went bullish in March.

2016-06-02_brazil_d

 

Below is the 240m chart.  The 240m is in a strong bearish trend heading to the support.

2016-06-02_brazil_240

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About the Author Manesh Patel