From : International Equity Index Daily Hotline: 24 July 2014
Chart of the day: Bovespa begins to unwind
The Brazilian Bovespa Index encounters resistance at the 58,000 level having become overbought. We anticipate a consolidation from overbought back into its short term uptrend/base formation. We note initial support at 57,000 from spring and summer 2013 highs and further support at 55,300 from June's highs. Resistance remains at around 59,000.