Encouraging Technical Take on the Brazil ETF

With Brazilian elections five months away, Rousseff is seen as vulnerable due to her constituents’ concerns about the sturdiness of Latin America’s largest economy. A scandal involving state-controlled oil giant Petrobras (NYSE: PBR), EWZ’s largest holding, has not helped matters. [Brazil ETF Rises as Support for Rousseff Drops]

Additionally, investors have finally been putting cash back to work with EWZ. In the back half of April, EWZ has been one of the most prolific asset gatherers among single-country emerging markets ETFs, hauling in almost $318 million in new assets. [EWZ Sees Inflows]

iShares MSCI Brazil Capped ETF

Chart Courtesy: Captain John Charts

Tom Lydon’s clients own shares of EEM.