The Ibovespa closed the last week positive, completing the second consecutive week on the rise. As a result, it registered an increase of 0.89%, to 128,106 points. Throughout the week, the asset had an entry of selling force, even testing the 126,000 point range, where it boosted the index upwards, causing it to close in the positive and above 128,000 points. The asset continues with buying strength, trading above averages and has the potential to continue. If you are looking for a correction after a recent rise, you tend to look for the average range.
Based on the Ibovespa 60-minute chart, chart analyst Rodrigo Paz observes that the asset continues to be in a buying reaction after a bearish sequence. This occurred after reaching support in the region of 126,270 points, where buying force entered, driving the index upwards.
For the asset to follow the buying flow, it must remain above the range of 128,000 points, and surpass the average of 200 periods at 128,300 points. According to Paz, if it breaks, it tends to gain momentum to seek new resistance bands. Breaking this region, resistance tends to be at 129,300/129,550, with a longer target at 129,700/130,200 points.
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If the asset seeks to resume sales, it should break the average region of 127,880/127,375 points. Breaking this range, it may gain momentum in order to seek support at 126,750, with a longer target in the region of 126,270/126,070 points.
Day Trade today: Schedule
On today’s agenda in Brazil, highlights are the weekly IPC-S (8 am), PMI for the Manufacturing Industry for March (10 am) and the Economic Uncertainty indicator for March (10:15 am). At 3pm, President Lula meets with the Minister of the Civil House, Rui Costa, Minister of Finance, Fernando Haddad, and Minister of Mines and Energy, Alexandre Silveira.
In the USA, highlights include the manufacturing industry PMI for March (10:45 am) and the manufacturing industry ISM for March (11 am, Reuters expectation of 48 points).
International markets
At 7:50 am, futures in NY were trading higher: Dow, +0.27%; S&P500, +0.38%; and Nasdaq, +0.56%. In Europe, the stock markets remain closed due to the holiday, and in Asia, the Tokyo stock market fell 1.40% and the Shanghai stock market rose 1.19%.
In the US, the yield on 10-year bonds rises to 4.210%, and the dollar index (DXY) operates up 0.04%, at 104.59 points.
Meanwhile, WTI oil falls to US$82.95, with -0.26%, and Brent oil falls 0.34%, to US$86.68.
On the Dalian stock exchange, the ore rose 2.61%, to 768.00 yuan, equivalent to US$106.22.
Minicontracts
Mini-index contracts (WINJ24)due in April, closed higher last Thursday, registering an increase of 0.56%, at 128,740 points.
Thus, based on last Thursday’s closing, at 128,740, technical analyst Rodrigo Paz points out how resistance 129,000/129,310 (1), 129,740/130,000 (2) and 130,655 (3). Meanwhile, the supports are in 128,480 (1), 128,000/127,815 (2) and 127,095/126,830 (3).
“For today’s trading session (Monday), traders should pay attention to the possible continuation of the index’s buying movement, as it trades between averages, and if it exceeds the 129,000 point range, it could gain new buying momentum. In case of correction, it is worth paying attention to the range of 128,480/128,000 points”, points out Paz.
Minidollar contracts (WDOK24)due in May, closed positive for the third consecutive day, registering an increase of 0.63%, at 5,037 points.
Thus, based on last Thursday’s closing, at 5,037 points, technical analyst Rodrigo Paz points out as supports 5,031.5/5,025 (1), 5,020.5/5,014.5 (2) and 5,003.5 (3). Meanwhile, resistance is in 5,040 (1), 5,052/5,059 (2) and 5,071 (3).
Based on the 15-minute chart, it can be seen that the mini-dollar contract is trading upwards and shows potential for continuation. However, it is worth paying attention to the distance from the averages due to recent increases that could cause correction movements.
Support and resistance
Check now the main points of support and resistance for the dollar and index mini contracts for this Monday.
Check out more content about technical analysis on IM Trader. Daily, infomoney publishes what to expect from dollar and index mini contracts. The broker made by trader for trader. Open your account at Modal.
