Bovespa Symmetrical Downtrend Moves Back to a 1.618 Extension.

The Bovespa has been forming a symmetrical downward trend followed by a 1.618 extension of the longer bull trend. You can see this in the chart by the first light blue fib retracement, and then I used a green arrow to indicate where the second retracement line is compared to the green 1.618 retracement line. The second to last move down is a bit tricky as it extended further than the previous downward moves (indicated by the dashed blue trend lines) and did not fully retrace back to its 1.618 extension of the larger trend. Instead it only retraced back to the .786 fib line and again made a downward move extremely similar to past downward moves (again indicated by the dashed blue lines.) It may be forming a double bottom, especially if it finishes out its symmetrical downward trend line, which is about where it’s at. If this is the case, expect a move again back to its 1.618 retracement. This mark is also important as it overlaps the much larger downward trend that started back in November of 2015. These retracement lines overlap almost perfectly and is indicates strong resistance.

Target Price: is 55975-56007 by early to mid-June. I would actually rate this quite conservative as the upward extensions seem to happen in a 5-ish day time cycle sometimes followed by a week of slowly moving bullish trends indicating indecision.

Make sure to give it time to play out its double bottom which Should be slightly higher than its first bottom of 49907.77 and be sure to use a smaller time frame chart for your entry. To play this index I may use a leveraged ETF like BRZU.

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Thanks!