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.
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Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
Momentum Indicator for EWZ turns positive, indicating new upward trend
EWZ saw its Momentum Indicator move above the 0 level on August 25, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 78 similar instances where the indicator turned positive. In 69 of the 78 cases, the stock moved higher in the following days. The odds of a move higher are at 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for EWZ just turned positive on August 24, 2026. Looking at past instances where EWZ's MACD turned positive, the stock continued to rise in 38 of 49 cases over the following month. The odds of a continued upward trend are 78%.
EWZ moved above its 50-day moving average on August 21, 2026 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 September 01, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 18 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 83%.
Following a +4.27% 3-day Advance, the price is estimated to grow further. Considering data from situations where EWZ advanced for three days, in 272 of 310 cases, the price rose further within the following month. The odds of a continued upward trend are 88%.
The Aroon Indicator entered an Uptrend today. In 192 of 219 cases where EWZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 88%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for EWZ moved below the 200-day moving average on August 07, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 88%.
EWZ broke above its upper Bollinger Band on September 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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