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.
Aroon Indicator for EWZ shows an upward move is likely
EWZ's Aroon Indicator triggered a bullish signal on July 15, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 194 similar instances where the Aroon Indicator showed a similar pattern. In of the 194 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
EWZ moved above its 50-day moving average on July 16, 2025 date and that indicates a change from a downward trend to an upward trend.
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 .
Bearish Trend Analysis
The 10-day RSI Indicator for EWZ moved out of overbought territory on July 07, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on July 11, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on EWZ as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for EWZ turned negative on July 09, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
EWZ broke above its upper Bollinger Band on July 03, 2025. 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.
Industry description
High and low price notable news
Advertisement
General Information
Category LatinAmericaStock
Advertisement