Bovespa Update May 2015 (D)

The Bovespa has pretty much made a bullseye hit on the target for high outlined in previous analysis. Let’s take a look using the daily chart.


I have added Fibonacci retracement levels of the move down from September 2014 high to December 2014. We can see the high today clipped the 76.4% level putting in a high at 58575.
This high was also just below resistance which stemmed from the October 2014 high at 58897 and is denoted by the horizontal line. Nice.
The high was also at resistance given by the 88.6% angle of the Fibonacci Fan which was the expectation.
The Bollinger Bands show the high today traded well above the upper band which is consistent with solid tops.
This high was accompanied by a triple bearish divergence on the RSI which often leads to a significant decline and that is certainly my expectation here.
As expected the MACD indicator has pushed a touch higher since the recent report and now looks to be curling over and threatening a bearish crossover.
Finally, the high today spiked up at the start of the session before reversing and trending down impulsively. This has set up a bearish outside reversal candle. There should be some consolidation of this candle but the scene now looks set for a solid move down.
Summing up, the bulls look to have made their last charge and it is now game over for this index.


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