EWZ in a bullish trend

From mid-March to mid-May, EWZ – the iShares MSCI Brazil Capped ETF – was moving in a descending channel, between the orange lines that join the highs and the lows of price.

Then an impressive price reversal took place. As we can see in the blue box, since late May, EWZ is in a strong bullish trend as price moves between its 10-day exponential moving average and the upper Bollinger Band. In fact, price has just broken above the brown resistance line at 44.

As soon as the trend reversed, MACD moved above its signal line and later moved to bullish territory.

Just as important, for about a month, EWZ’s Relative Strength is moving mostly up and above its 20-day exponential moving average.