EWZ – iShares MSCI Brazil Capped ETF.

Last updated April 30, 2019

The recent advance off the 2018 low to the 2018 EOY high looks and counts best as only three waves up: hence corrective. This means the preferred POV is that a b-wave took place and now a c-wave is underway. This in turn means major-2 is most likely becoming a flat correction, which can either be regular (a=b=c), irregular (c>a=b) or failed (c<a=b). We don’t know yet, but with the 62% retrace still at mid-27s it may want to target that level first. The alternate is a set of nested 1st and 2nd waves, but we need to see price move above $47 from current levels to make that the preferred count. A break below (green) minor-b ($36) will take the alternate option off the table as than the possible wave-2 moves below the start of the possible wave-1, which is not allowed.