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Brazil 60 - Possible Next Leg Up?

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Looking at the Brazil 60 chart, could it be preparing for the next leg upwards?

 

I am surprised that more on the IG Community have not been talking about Brazil. 

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From a trend following perspective, one should welcome volatility. 

 

Also Bitcoin is one of the strongest trends and bull markets I have witnessed yet it is one of the most volatile trades ever.

 

If you want to know the volatility then just look at the Brazil charts!

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Brazil 60 looking strong over July 2018 as the chart below shows.

403818331_Brazil60_20180730_19_12.thumb.png.0e3f04f2683cfe70f83f3dddddcebdfd.png

 

Now if you look at the chart with the 20 day, 50 day and 100 day moving averages then you will appreciate that this could start to get interesting for trend followers who have not entered this trade yet. 

738158719_Brazil60_20180730_19_14.thumb.png.6fab27a4956e08c34b8cbdaa210ab1c3.png

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Brazil 60 up nearly 3000 points at the time of writing which is just below 4%. That is not bad in one day. Add leverage and you get my point.

1634530283_Brazil60_20181002_16_57.thumb.png.8028c7b5e0ab762d8205966a0b9ace92.png

 

It is trading above its 20, 50 and 100 day moving averages which is a positive sign. There is a risk that it resumes downwards but if it surpasses 82.5k then the long term trend could be set for its next leg upwards.

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This has surpassed 82.5. I think now the next target has to be around the 87.5k area. Then we are looking at brand new highs and new higher highs.

1778865694_Brazil60_20181004_05_31.thumb.png.80c35d325a6e1450f6a596e9f6213928.png

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Brazil 60 up over 3330 points at the time of writing which is over 4% for the day.

It is getting very close to that 87.5 level.

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Brazil 60 is up over 3000 points at the time of writing. This is just under 4% for the day. 

It is currently trading above its 20, 50, 100 and 200 day moving averages. On top of this there could be a potential breakout from the current range bound volatility witnessed which is shown by the chart I have posted below.

1002991551_Brazil60_20181030_19_06.thumb.png.76335d16269353c7b328aa33a38426be.png

 

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If you look at my last post back on 30th October 2018 and my analysis then look at the chart below:

283778900_Brazil60_20190125_17_43.thumb.png.656c2cc7c538c536cc7a47f8690087d0.png

Need I say anymore?

The key is to identify potential trends to trade. Then it is about trading them. As long as sound risk management strategy is applied and stop losses are in place then it is about riding the trend until it changes direction. This includes any sideways activity for a longer period than envisaged for me. 

You can re-enter the trade as many times as you like but never go against the trend. 

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Brazil 60 is on fire!

Hopefully some of you have been trading it on the 'Long' side. 

The current 'daily' chart is below:

1104019479_Brazil60_20190710_19_20.png.96e782d10864ea4f8df2ad374cfcaaa3.png

It is making new highs. It is also making new higher lows and new higher highs. This is an extremely bullish sign. This trend has lasted several years now and upward trends last a lot longer than some seem to think. 

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During the recent equity sell off where major indices have fallen sharply, Brazil 60, to date withstands the sell off with some robust price action. It shows why a diversified portfolio is required in an investment portfolio. I include the chart 'daily' below.

1434574113_Brazil60_20190803_09_01.thumb.png.fe32e87e501be2f3d524a60033bae97a.png

This is impressive as India has really felt the brunt of this recent equity sell off. So it is interesting that one emerging markets goes sharply down where as another holds its ground (for now at least). Obviously there are reasons why this is the case which is a different thread / post altogether.

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Brazil 60 is actually trading higher than it was when I posted my previous post. It is current around 103940.

The question here is whether it is still behind the wider sell off and decides to play catch up in the declining bearish move or not? If it does then it could experience a sharp sell off. This is the big risk here. The other question arising is whether the uptrend is weakening leading to a trend reversal?

One must follow the price action as it will answer these questions shortly. 

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It seems my question from my previous post in August has been answered. It is now November and that Brazil 60 is trading higher than it has even been during the life of this specific thread which is approaching its two year anniversary. 

Trends can last a lot longer than many traders think. This is why I do not try and overtrade and favour trend following as an easier way of trading. It does not require one to time the market, get in at the bottom or sell at the top. Sometimes just riding the trend and doing nothing too clever is what is required. It is easier said than done though. Traders can get trigger happy and can start entering and exiting positions, taking losses and all sorts. 

Just look at the chart over the past two years and if you had just invested and held or traded longer term then the chances of profiting would have increased for any investor or trader. Trying to use complex trading techniques to call potential bottoms and tops are for skilled traders only and not for beginners or novice traders.

1893552224_Brazil60_20191104_18_34.png.b8924baaf1a462b7ea3df3f7b5444d1d.png

There are sharp drops and this volatility can make or break traders depending on their trading strategy. Hindsight is a wonderful thing but there are times when traders and investors can take a directional position and let the market do all the work for them rather than overtrading.

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Over the past four years, Brazil 60, has trended strongly upwards.

1522753028_Brazil60_20191125_20_35.thumb.png.d60d60a237de49065f9ae93d8d807f0a.png

There will be drops and corrections on any strong trending asset as nothing travels in a straight line upwards like a rocket and if it did then I would be extremely concerned. This is an example of a great long term trend. 

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