Brazil ETF Trying to Break Multiyear Resistance
Emerging markets and global stocks have roared to life at the end of 2019. The reasons are a dovish Federal Reserve, which drives buyers away from the 
U.S. dollar, and calming tensions between the U.S. and China. Brexit clarity has helped too.
Along with China, Brazil is the most actively traded emerging market. Its
iShares MSCI Brazil ETF has even stronger technicals than the iShares China ETF. Unlike the China fund, EWZ's 50-day simple moving average (SMA) is above its 200-day day.
EWZ is also pushing a longer-term resistance level around $48 running back to early last year. The breakout hasn't been confirmed yet, but traders may want to keep an eye on it. Global stocks have been neglected for so long that there could be a rush of money back into them if this change in sentiment continues. Similar turns from "hated" to "loved" recently occurred in stocks like
CVS Health and 
UnitedHealth.
Brazil has two other things potentially in its favor. First is its reliance on commodities, which have started to outperform and got a bullish call from
Goldman Sachs this week. Second, Brazil has passed a key pension overhaul that's expected to help fix its chronic budget problems.
U.S. dollar, and calming tensions between the U.S. and China. Brexit clarity has helped too.Along with China, Brazil is the most actively traded emerging market. Its
iShares MSCI Brazil ETF has even stronger technicals than the iShares China ETF. Unlike the China fund, EWZ's 50-day simple moving average (SMA) is above its 200-day day. EWZ is also pushing a longer-term resistance level around $48 running back to early last year. The breakout hasn't been confirmed yet, but traders may want to keep an eye on it. Global stocks have been neglected for so long that there could be a rush of money back into them if this change in sentiment continues. Similar turns from "hated" to "loved" recently occurred in stocks like
CVS Health and UnitedHealth. Brazil has two other things potentially in its favor. First is its reliance on commodities, which have started to outperform and got a bullish call from
Goldman Sachs this week. Second, Brazil has passed a key pension overhaul that's expected to help fix its chronic budget problems.
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