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 MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for EWZ turned positive on June 12, 2026. Looking at past instances where EWZ's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where EWZ's RSI Indicator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 70 cases where EWZ's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 309 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
EWZ moved below its 50-day moving average on May 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for EWZ crossed bearishly below the 50-day moving average on May 15, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 June 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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