iShares MSCI Brazil ETF (EWZ) is trading in the mid‑30s, near 35.93, after a multi‑month advance that began in early 2025. On the weekly timeframe, price continues to post higher highs and higher lows while holding above a clearly rising 50‑week moving average.
Recent weeks show a controlled pullback toward the 50‑week moving average, with buyers stepping in around the 33.24‑35.93 area. This rebound confirms that the moving average remains an active support zone rather than a ceiling, reinforcing the prevailing bullish structure.
EWZ currently trades closer to the upper half of its 52‑week range of 26.30‑42.02, consistent with improving sentiment toward Brazilian equities. The shift from prior lows in the mid‑20s to repeated closes in the mid‑30s reflects a higher underlying price floor.
Historical behavior in EWZ suggests that sustained trading above rising long‑term moving averages can precede extended rallies, particularly when pullbacks toward those averages are shallow and quickly bought. If price continues to respect the 50‑week moving average, a bullish continuation scenario with a breakout above recent highs could develop over the next 3‑12 months.
Alternatively, EWZ could spend several months consolidating around the 33‑36 band, using the 50‑week moving average as a pivot while markets digest prior gains. A more negative path would require a decisive weekly close below the 50‑week moving average, combined with weaker Brazilian or global macro conditions, which in past cycles has led to deeper corrections and multi‑month trend reversals.
Terminology
- 0150-week moving average: Average closing price over 50 weeks, used to gauge long-term trend direction.
- 0252-week range: Highest and lowest traded prices over the past 12 months.