{"id":196939,"date":"2024-08-20T09:38:36","date_gmt":"2024-08-20T13:38:36","guid":{"rendered":"https:\/\/ibkrcampus.eu\/campus\/uncategorized\/chart-advisor-analyzing-brazil-etf-rally\/"},"modified":"2024-08-21T10:19:10","modified_gmt":"2024-08-21T10:19:10","slug":"chart-advisor-analyzing-brazil-etf-rally","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.eu\/campus\/traders-insight\/securities\/macro\/chart-advisor-analyzing-brazil-etf-rally\/","title":{"rendered":"Chart Advisor: Analyzing Brazil ETF Rally"},"content":{"rendered":"\n<p>By <a href=\"https:\/\/cmtassociation.org\/presenter\/john-salama-cmt\/?hid=90d17f099329ca22bf4d744949acc3331bd9f9f4&amp;did=14233024-20240820&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=082024\">John Salama, CMT<\/a><\/p>\n\n\n\n<p><strong>1\/ Brazil Rallies, Faces Resistance<\/strong><\/p>\n\n\n\n<p><strong>2\/ Natural Gas Poised for Potential Fall<\/strong><\/p>\n\n\n\n<p><strong>3\/ Oil Set for Short-Term Decline<\/strong><\/p>\n\n\n\n<p><strong>4\/ Healthcare Hits New All Time Highs<br><\/strong><em>Investopedia is partnering with CMT Association on this newsletter. &nbsp;The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-brazil-rallies-faces-resistance\">1\/ <strong>Brazil Rallies, Faces Resistance<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"495\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/08\/pic1-2-1100x495.png\" alt=\"\" class=\"wp-image-196944 lazyload\" data-srcset=\"https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic1-2-1100x495.png 1100w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic1-2-700x315.png 700w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic1-2-300x135.png 300w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic1-2-768x346.png 768w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic1-2-1536x691.png 1536w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic1-2.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/495;\" \/><\/figure>\n\n\n\n<p><em>Courtesy of barchart<\/em><\/p>\n\n\n\n<p>Past performance is not indicative of future results.<\/p>\n\n\n\n<p>The Brazil ETF (EWZ) has emerged as one of the strongest performers, rebounding sharply from a 52-week low during the Japan crash on August 5th to gain 18% in just two weeks, averaging a 1.3% daily increase. This recent volatility surge and new three-month highs have brought EWZ within 1.9% of its declining 200-day moving average, currently at $31.53. The ETF peaked at $35.74 on December 19th and has since been making lower highs until breaking out above $29.50 last week.<\/p>\n\n\n\n<p>Despite being oversold in June and briefly overbought last November, EWZ has struggled to maintain levels above the 200 DMA since April.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-natural-gas-poised-for-potential-fall\">2\/ <strong>Natural Gas Poised for Potential Fall<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"505\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/08\/pic2-3-1100x505.png\" alt=\"\" class=\"wp-image-196943 lazyload\" data-srcset=\"https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic2-3-1100x505.png 1100w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic2-3-700x322.png 700w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic2-3-300x138.png 300w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic2-3-768x353.png 768w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic2-3-1536x706.png 1536w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic2-3.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/505;\" \/><\/figure>\n\n\n\n<p><em>Courtesy of barchart<\/em><\/p>\n\n\n\n<p>Past performance is not indicative of future results.<\/p>\n\n\n\n<p>The Natural Gas Fund (UNG) has been a poor performer for years, with its fund operator even instituting a reverse split in January due to significant underperformance. Historically, October, January, May, and June have provided ideal selling points as the fund approaches new 52-week lows\u2014most recently hitting $12.57 during the Japan crash two weeks ago. The 200-day moving average (200 DMA) currently acts as significant resistance at $18.15.<\/p>\n\n\n\n<p>Over the past two weeks, UNG has surged 17%, a remarkable recovery from nearly oversold conditions, reaching a 52 RSI. For this summer, a 50 RSI has been the peak before a reversal lower. The 52-week high of $31.92 was set last October. UNG has experienced oversold conditions, particularly in December and February, and only briefly entered overbought territory for six days in May before facing rejection and subsequent decline.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-oil-set-for-short-term-decline\">3\/ <strong>Oil Set for Short-Term Decline<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"495\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/08\/pic3-5-1100x495.png\" alt=\"\" class=\"wp-image-196942 lazyload\" data-srcset=\"https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic3-5-1100x495.png 1100w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic3-5-700x315.png 700w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic3-5-300x135.png 300w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic3-5-768x346.png 768w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic3-5-1536x691.png 1536w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic3-5.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/495;\" \/><\/figure>\n\n\n\n<p><em>Courtesy of barchart<\/em><\/p>\n\n\n\n<p>Past performance is not indicative of future results.<\/p>\n\n\n\n<p>The US Oil Fund (USO) has remained largely range-bound since reaching its 52-week high of $83.41 in April, fluctuating between $70 and $83 for the past six months. The 200-day moving average (200 DMA) has provided significant support since January, with brief breakdowns typically lasting less than a week. Currently, the 200 DMA stands at $74.37, showing a slight decline. The 52-week low was $63.84, reached in December. <\/p>\n\n\n\n<p>This year, USO has not experienced oversold conditions but has seen overbought periods, notably in September and briefly in April, driven by geopolitical concerns in the Middle East. Following a 10% rally from the Japan crash lows, the fund has given back about half of those gains.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-healthcare-hits-new-all-time-highs-nbsp\">4\/ <strong>Healthcare Hits New All Time Highs&nbsp;<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1100\" height=\"499\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/08\/pic4-3-1100x499.png\" alt=\"\" class=\"wp-image-196941 lazyload\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/499;width:950px;height:auto\" data-srcset=\"https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic4-3-1100x499.png 1100w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic4-3-700x318.png 700w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic4-3-300x136.png 300w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic4-3-768x348.png 768w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic4-3-1536x697.png 1536w, https:\/\/ibkrcampus.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic4-3.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<p><em>Courtesy of barchart<\/em><\/p>\n\n\n\n<p>Past performance is not indicative of future results.<\/p>\n\n\n\n<p>The S&amp;P 500 Healthcare Sector SPDR (XLV) displays an impressive chart. Its recent performance suggests that market gains are not solely driven by the Artificial Intelligence boom. Rather, it could be a reflection of market expectations for lower future interest rates or a robust defensive play. XLV is one of the few sectors that has consistently achieved new all-time highs over the past week, including today.<\/p>\n\n\n\n<p>After being oversold in October and April, XLV has rebounded strongly, spending significant time in overbought conditions during January and February. From January to July, it was confined to a 7% range between $138 and $148. The breakout above $148 in July was crucial for investors, although it briefly fell below this level during the Japan crash. However, XLV has since rebounded to new all-time highs, closing today at $153.90.<\/p>\n\n\n\n<p>The 200-day moving average, which acts as a strong support level, currently sits at $141.82, about 8% below the current price. XLV has not closed below its 200 DMA since November, when it was out of favor with investors.<\/p>\n\n\n\n<p><strong>About this week&#8217;s author<\/strong><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/cmtassociation.org\/presenter\/john-salama-cmt\/?hid=90d17f099329ca22bf4d744949acc3331bd9f9f4&amp;did=14233024-20240820&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=082024\" target=\"_blank\" rel=\"noreferrer noopener\">John Salama, CMT<\/a><\/strong>, is a Chartered Market Technician since 2021 with over 15 years of institutional derivatives experience. Currently, John is a proprietary trader who systematically utilizes technical analysis. He shares his expertise by broadcasting his trading process three days a week at market close on his YouTube channel, aiming to educate retail traders. He is also a regular interviewee for Business Insider.<\/p>\n\n\n\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<\/p>\n\n\n\n<p>Originally posted on August 20th, 2024<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By John Salama, CMT 1\/ Brazil Rallies, Faces Resistance 2\/ Natural Gas Poised for Potential Fall 3\/ Oil Set for Short-Term Decline 4\/ Healthcare Hits New All Time HighsInvestopedia is partnering with CMT Association on this newsletter. &nbsp;The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing [&hellip;]<\/p>\n","protected":false},"author":186,"featured_media":196940,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[144,335,146,147,8,12,22,148,7],"tags":[2153,1169,1063,1225,1845,966],"contributors-categories":[503],"class_list":{"0":"post-196939","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-commodities","8":"category-etfs","9":"category-macro","10":"category-north-america","11":"category-region","12":"category-securities","13":"category-technical-analysis","14":"category-text-articles","15":"category-traders-insight","16":"tag-ewz","17":"tag-gas","18":"tag-spdr","19":"tag-ung","20":"tag-uso","21":"tag-xlv","22":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: Analyzing Brazil ETF Rally | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"The Brazil ETF (EWZ) has emerged as one of the strongest performers, rebounding sharply from a 52-week low during the Japan crash on August 5th to gain...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/196939\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chart Advisor: Analyzing Brazil ETF Rally\" \/>\n<meta property=\"og:description\" content=\"The Brazil ETF (EWZ) has emerged as one of the strongest performers, rebounding sharply from a 52-week low during the Japan crash on August 5th to gain 18% in just two weeks, averaging a 1.3% daily increase. This recent volatility surge and new three-month highs have brought EWZ within 1.9% of its declining 200-day moving average, currently at $31.53. The ETF peaked at $35.74 on December 19th and has since been making lower highs until breaking out above $29.50 last week.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.eu\/campus\/traders-insight\/securities\/macro\/chart-advisor-analyzing-brazil-etf-rally\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus EU\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-20T13:38:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-21T10:19:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.interactivebrokers.eu\/campus\/wp-content\/uploads\/sites\/3\/2024\/08\/pic1-3.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"864\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Contributor Author\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Contributor Author\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"Article\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/traders-insight\\\/securities\\\/macro\\\/chart-advisor-analyzing-brazil-etf-rally\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/traders-insight\\\/securities\\\/macro\\\/chart-advisor-analyzing-brazil-etf-rally\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Contributor Author\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/#\\\/schema\\\/person\\\/e823e46b42ca381080387e794318a485\"\n\t            },\n\t            \"headline\": \"Chart Advisor: Analyzing Brazil ETF Rally\",\n\t            \"datePublished\": \"2024-08-20T13:38:36+00:00\",\n\t            \"dateModified\": \"2024-08-21T10:19:10+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/traders-insight\\\/securities\\\/macro\\\/chart-advisor-analyzing-brazil-etf-rally\\\/\"\n\t            },\n\t            \"wordCount\": 740,\n\t            \"commentCount\": 0,\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/traders-insight\\\/securities\\\/macro\\\/chart-advisor-analyzing-brazil-etf-rally\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2024\\\/08\\\/pic1-3.png\",\n\t            \"keywords\": [\n\t                \"EWZ\",\n\t                \"gas\",\n\t                \"SPDR\",\n\t                \"UNG\",\n\t                \"USO\",\n\t                \"XLV\"\n\t            ],\n\t            \"articleSection\": [\n\t                \"Commodities\",\n\t                \"ETFs\",\n\t                \"Macro\",\n\t                \"North America\",\n\t                \"Region\",\n\t                \"Securities\",\n\t                \"Technical Analysis\",\n\t                \"Text Articles\",\n\t                \"Traders' Insight\"\n\t            ],\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"CommentAction\",\n\t                    \"name\": \"Comment\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/traders-insight\\\/securities\\\/macro\\\/chart-advisor-analyzing-brazil-etf-rally\\\/#respond\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/traders-insight\\\/securities\\\/macro\\\/chart-advisor-analyzing-brazil-etf-rally\\\/\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/traders-insight\\\/securities\\\/macro\\\/chart-advisor-analyzing-brazil-etf-rally\\\/\",\n\t            \"name\": \"Chart Advisor: Analyzing Brazil ETF Rally - 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