Could it Be? The EWZ is Bottoming?

Every time iShares MSCI Brazil Capped (EWZ) has built a constructive basing pattern structure since 2010, it has failed miserably to follow-through on the upside, and instead has plunged to lower bear market lows.

That said, however, all of the action carved out during the past 12 months represents the next best opportunity for EWZ to thrust itself into a new bull phase.

Let's notice that since early April 2014, EWZ has been trading above its rising 200-Day EMA, now at 46.60, which has become powerful support on any weakness, as well as the launch pad for the next upleg.

The climb off of the July 3 low at 46.97 has the right look of the start of a new upleg that must climb above key resistance between 50.00 and 51.75 to trigger upside traction towards 57.75-58.25 thereafter, in what will represent a major bottom for the Brazil ETF after a multi-year bear market.