Ibovespa closed the last session positive for the second day in a row. As a result, it registered an increase of 1.09%, to 128,508 points. After a downward movement last Tuesday, in a sign of correction, the index resumed its rise and closed above 128,000 points. Faced with such a movement, the asset has the potential to continue, and to do so it must surpass the 128,790 range. However, it is worth paying attention, as due to the recent highs it has distanced itself from the averages, and if it seeks to get closer it could form a corrective movement after recent highs.
Based on the Ibovespa 60-minute chart, chart analyst Rodrigo Paz observes that the asset has resumed its upward flow and has the potential for continuity. This occurred after reaching support in the range of 125,855 points, where buying force entered, driving the index upwards and resuming above the averages. However, attention should be paid if the asset breaks the average range downwards.
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For the asset to resume its downward flow, it must break the range of averages in the 128,177/127,230 points. According to Paz, if it breaks, it will be able to continue with sales to seek new support bands. Breaking through this region, it tends to seek support in the 126,630with a longer target in 125,855/125,000 points.
If it follows the buying flow of the last sessions it should surpass the 128,790 points. Breaking through this range, you can gain momentum in order to look for a region of resistance in the 129,180/130,000with a longer target in the region of 130,830 points.
Day Trade today: Schedule
Today’s agenda highlights the composite PMI released by Markit, with data from April, at 10 am. The Central Bank will also release the Focus report (8:25 am) and the press release on fiscal policy, for March, at 8:30 am.
In the USA, speeches by the president of the Richmond Fed, Tom Barkin, and the president of the New York Fed, John Williams, could shake up business this Monday (6).
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International markets
At 7:40 am, futures in NY were trading higher: Dow, +0.24%; S&P500, +0.30%; and Nasdaq, +0.27%. In Europe, the Stoxx600 operates up 0.59%, and in Asia, the Shanghai stock exchange rose 1.16%.
In the USA, the yield on 10-year bonds is falling, at 4.471%, and the dollar index (DXY) is rising by 0.03%, at 105.05 points.
Meanwhile, WTI oil rose to US$78.89, +1.00%, and Brent oil rose 0.81%, to US$83.63.
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Minicontracts
Mini-index contracts (WINM24)due in June, closed the last session positive, registering a strong increase of 1.49%, at 130,175 points.
Based on last Friday’s closing at 130,175, technical analyst Rodrigo Paz points out how resistance 130,615 (1), 130,995 (2) and 131,840 (3). Meanwhile, the supports are in 130,080/129,940 (1), 129,550/129,000 (2) and 128,835/128,250 (3).
“For today’s trading session (Monday), traders should pay attention to the possible continuation of the increases for the mini-index. To follow this movement it will be necessary to break the region of 130,315 points. However, it is worth paying attention, as due to the recent highs, the asset may seek a correction movement, and to do so it must surpass the average range of 130,080/129,940 points”, points out Paz.
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Minidollar contracts (WDOM24)due in June, closed the last session in the negative, registering a drop of 0.76%, at 5,088 points.
Thus, based on last Friday’s closing, at 5,088 points, technical analyst Rodrigo Paz points out as supports 5,075/5,057.5 (1), 5,032 (2) and 5,021 (3). Meanwhile, resistance is in 5,098.5/5,114.5 (1), 5,131/5,136 (2) and 5,173.5 (3).
Based on the 15-minute chart, it is possible to notice that the mini-dollar contract is trading in a downtrend, and could continue if it breaks the 5,075/5,057.5 point range. However, it is worth paying attention, as if the asset surpasses the 5,098.5 point range, it may resume its upward movement.
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 best platforms to operate on the Stock Exchange. Open an account at XP.
