BRF’s “long-term trend is clearly in the downward direction, as illustrated by the dotted trendline. While at first glance, this chart is extremely bearish, it is worth noting that the oversold readings on the Relative Strength Index and the fast Stochastic indicator, shown by the blue circles, are suggesting that a short-term bounce could be in the cards. While it may not seem like much on the chart, a move to the trendline represents an increase of nearly 14% from current levels,” according to Investopedia.
In September, Standard & Poor’s downgraded Brazil’s sovereign credit rating to junk status, becoming the first major ratings agency to do so. Even after the retreat, Brazilian stocks may have further to fall as the economic contract worsens.
Market Vectors Brazil Small-Cap ETF
