The Bovespa Index rallied strongly off support at 48000 and is likely to test resistance at 58000. Breach of the descending trendline on 13-week Twiggs Money Flow indicates short-term buying pressure. But we are in a bear market and this is unlikely to change in the near future.
* Target calculation: 58000 – ( 72000 – 58000 ) = 44000
Another resource-rich market, the JSE, signals medium-term buying support with a bullish divergence on 13-week Twiggs Money Flow. Recovery above 30000 is likely, but we remain in a bear market and can expect a future test of support at 27000*.
* Target calculation: 30000 – ( 33000 – 30000 ) = 27000