Does this seem like Goodbye to third world countries!The Brazilian fiscal issue is not going well. Therefore, it directly reflects on the IBOV index, especially for companies linked to the domestic economy, which is very dependent on family income and low interest rates (SELIC) to keep their activities up to date.
This was already written in the stars. Sometimes we need to be seers. Lol
The growing number of RJ (Judicial Reorganization) is a worrying factor at this time, and opens up gaps for it to contaminate the entire (domestic) consumer sector, from durable to non-durable goods.
The big problem for now would not be the slowdown in the economy, as it is to be expected that soon after a big "boom" of easy money, things will start to get strange and to maintain this "growth" more money needs to be injected.
That's where the danger lies. How can we keep the economy running if we have a lack of money in the Brazilian market?
The only way out for the government would be via interest rates (SELIC), reducing it, to "artificially" heat up the economy and also put a definitive damper on supposed growth.
Looking at it in a simplistic way, it is not the high interest rates in Brazil that are strangling the economy, but rather the lack of credibility and especially of decent, long-term projects that involve foreign money.
Therefore, reducing interest rates (SELIC) for now will not solve anything for Brazil, it will only advance the process of "euthanasia" of the strong, but weakened, Brazilian economy. As is to be expected, "Brazil does not miss the opportunity to miss great opportunities."
Another factor that is in evidence is that we see
foreigners rescuing their rich money from emerging markets, this is a bad sign, after all, something big could be coming later on a global level, impacting all countries across the globe.
We are still working within the corrective bias described in the previous analysis, so the most interesting support point for the moment is the 124K range (psychological support), but rational support is found at 121.8K.
Below, I leave an image of the bearish pivot on the monthly chart pointed out by the SETUP used. He mentions that the loss of the 126.6K range sets precedents for sharper corrections, as there are almost 50 days working in this price range.
Note. The red lines are support points. The loss of it sets precedents for prices to seek the white line and, consequently, the yellow lines.
This is important?
We never learn!
Do your analysis and good business.
Be aware. If you buy, use Stop Loss.
See other graphical analyzes below.
