The Brazilian Bovespa has overshoot its ideal target at 68.307 rallying higher towards 69.336 (overshooting its ideal target by 1.5%), but the massive negative divergence should cause concern for the bulls.
Taking a closer look at the finanl upmove in the Bovespa, here at the hourly chart we can see a nice five wave uptrend and wave 5 hitting the median line of the wave
2 - 4 channel adding confidence in a possible top being in place at 69,336.
A break below 66,966 and more importantly 65,728 will confirm to top being in place.
Closing in on the last part of the rally (wave v)on the 5 minutes chart we can once again see a clear five wave rally hitting the top of the wave ii - iv channel (red)once again adding confidence that the top might be in place.
A break below 66,966 would confirm the top, as wave iv may not overlap with wave i and the final confirmation would be a break below 65,728 as that would break the beginning of wave v.
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ReplyDeleteDo you read minds too ? LOL.
ReplyDeleteAs I was coming in to ask you what was your thoughts on the latest developments down there was and here you are, really, that was funny.
Job report coming out in 5 minutes, let's see what happens.
Thks and have a great weekend!
Fred
I think Bovespa has topped, but lets have supports taken out to add confidence.
ReplyDeleteYou have a great weekend too.