Bullish signal on Brazil ETF as it hits the lower rail of a channel
Over the last six months, Brazil’s stock market has performed as well, if not better, than any market in the world. The Bovespa is up almost 19% during that time. The iShares MSCI Brazil Capped ETF (NYSE: EWZ) is one ETF that represents the Brazilian market and it is up 22.5% while the S&P 500 is actually down 3.4%.
The EWZ has formed a trend channel over the last eight months and the recent pullback has put the fund in contact with the lower rail of the channel. The fund jumped sharply on March 28 and that caused the daily stochastic readings to make a bullish crossover after reaching oversold territory.
The Tickeron AI Trend Prediction tool generated a bullish signal on the EWZ on March 27 and that signal showed a confidence level of 70%. More impressively, past predictions on the EWZ have been successful 90% of the time. This signal calls for a gain of at least 4% over the next month.
Brazil has benefitted from the different trade wars the United States has had with Mexico, Canada, and China. Agriculture products and steel have been at the center of the trade disputes and with tariffs being threatened and placed on some goods, Brazil has been the beneficiary. Two of Brazil’s biggest exports are soybeans and iron ore.
EWZ's RSI Oscillator recovers from oversold territory
The RSI Oscillator for EWZ moved out of oversold territory on October 13, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In of the 27 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 21, 2025. You may want to consider a long position or call options on EWZ as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for EWZ just turned positive on October 23, 2025. Looking at past instances where EWZ's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
EWZ moved above its 50-day moving average on October 17, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for EWZ crossed bullishly above the 50-day moving average on October 24, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EWZ advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
EWZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EWZ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for EWZ entered a downward trend on October 21, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Industry description
High and low price notable news
Advertisement
General Information
Category LatinAmericaStock
Advertisement