Some market observers have warned that even professional traders may be pricing in post-election price action in Brazilian stocks that is comparable to what has been seen this year in India and Indonesia.
“The issue we have with the current market sentiment is that Brazil is not a country pushing through meaningful economic reforms right now. Too many professionals are hoping that the election outcome will lead to better economic prospects and asset price appreciation as seen in the countries that actually are reforming, such as India and Indonesia,” said Rareview Macro founder Neil Azous in a recent research note.
Technical analysts have mostly bullish views of EWZ. “With a point & figure first target of 64, makes sense to us to continue to add on pull backs here,” according to Captain John Charts.
A move to $64 by EWZ would represent 19.1% upside from last Friday’s close.
iShares MSCI Brazil Capped ETF
