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Bullish breakout – Brazil ETF EWZ

|Includes: iShares MSCI Brazil Capped ETF (EWZ)
iShares MSCI Brazil Index Fund ETF (NYSEARCA:EWZbroke out of a well formed head and shoulders bottom reversal pattern last week along with a pickup in volume. It has now closed above the 200 daily exponential moving average (ema) for the first time since July 2011. Also supporting the bullish breakout, the 21ema has crossed back above the 55ema for the first time since May 2011.

Brazil ETF EWZ

Last week the 50% Fibonacci retracement of the larger downtrend from April 2011 high was hit. A pullback towards the neckline support can be watched for a new entry.

The measuring objective for this reversal pattern is approximately $77.77. If the target is reached EWZ would be very close to the highs hit in the period from late-2010 to early-2011. The high during that period was $81.76.

Lower targets can include $68.40, the 61.8% Fib. retracement level, followed by $73.60, the 78.6% Fib. level. (