EWZ is a ETF that follows the Brazilian Bovespa index:
This weekly chart is currently in a very dangerous position, mainly because of the MACD
curling to negative divergence! The last time this happenned lead to a big massive bear
market! Apart from that evidence, the weekly MACD curling is always a big alert that
a downtrend in happening or will happen...for sure!
Also, the stochastics oscillator is under a sell signal and the only thing keeping this bull is the
RSI being over 50 points.
My trend follower didn't throw yet the sell signal but, if I owned this ETF, I would be selling it.
Notice the last top was done by the end of November/2009 and I really doubt the EWZ will
make a new top in the next few weeks, because of the MACD and the stochastic oscillator sell
signals. These are two powerful and reliable sells.
...And look on the performance of my trend follower since June/2008 :)
Regads!
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