EWZ US trading 48.12 in pre-mkt up 4% on political poll results after 0.8% yesterday (that’s nearly 5% on an Index in 2 days)
This is still a buy on technical base target is 65 long term
From: Laurent Chekroun
Sent: Thursday, June 05, 2014 12:30 PM
Subject: TECH VIEW EWZ US (45.91 last) - work a buy at 45.30, target 65.00 with a stop loss on a daily close below 44.00
Summary
· EWZ has recently broke out from a 3 year declining wedge pattern
· The breakout level stands at 44.90-45.30 and while above this level a significant move higher is the preferred scenario
· The 44.90-45.30 area is:
o 45.30 = The wedge breakout area
o 45.30 = 38.2% Fibonacci retracement of the move from 38 low to 49.81 high
o 44.98 = 55 week moving average
o 44.97 = 200 day moving average
· The wedge breakout target is somewhere in between 67 and 73 (based on the height of the wedge or the top of it – both strategies are accepted)
· The recent pullback is viewed as move lower to re-test the breakout level and assuming this 44.97-45.30 provides support a move higher should be next
Strategy: Long from 47.08, add 1 more unit at 45.30, target a move to 65.00 with a stop loss on a daily close below 44.00
Daily chart – while above 44.97-45.30 chance for a significant more higher is my preferred scenario
Weekly chart – bullish wedge breakout targets a huge move higher (target 67-72 in a medium term perspective)
TECHNICAL TRADE IDEAS