On June 27th we published a short article about the Brazil ETF index, stating that there is a perfect 5-3 Elliott Wave setup waiting to be caught. “If this is the correct count, the 50.00 mark is supposed to be exceeded by the Brazil ETF index. This scenario would be invalidated, if prices go back to the start of the whole pattern at 45.77.” When we said that, the index looked like this:
On the next chart you will be able to see how this forecast developed after it was published. Once again we would like to remind you, that we did not use anything else except the above-shown chart. No news, no GDP reports etc.
As visible, prices made one more step lower, but stayed well above our point of invalidation, where the protective stop should be. Then the uptrend resumed, leading the Brazil ETF index to our minimum target of above 50.00 – 50.16 to be exact. Now, if we look at the whole price action, it looks like an (A)-(B)-(C) zig-zag correction. That is why we have to be careful, because if this assumption is right, there could be a reversal waiting just around the corner.
