Brazil’s Ibovespa opened at 171,907 points on Monday, marking a rebound from Friday’s intraday low of 166,196 points as a Marubozu buyer candle formed. The index’s daily relative strength index (RSI) stood at 51.15, indicating a neutral momentum recovery after exiting oversold territory. The MACD posted -1,466.38 points, while the SuperTrend indicator aligned at 173,385 points. The 200-day simple moving average (SMA200) remained at 174,249 points, creating a double resistance barrier with the SuperTrend.
Traders face two primary scenarios as the session progresses. A bearish outlook targets a rejection at 173,300 points, with technical stops set at 177,360 points and downside objectives at 167,210, 164,835, and 160,000 points. Risk-to-reward ratios for aggressive and conservative bearish entries range from 1.50 to 3.27:1, reflecting moderate confidence among traders. The no-trade zone remains between 170,000 and 173,000 points due to elevated technical noise and indecision.
On the bullish side, an initial reaction at the volume-weighted average price (VWAP) of 171,449 points could push the index toward 173,300, 174,249, and 178,800 points, with stops placed at 168,000 points. Risk-to-reward ratios for these levels range from 1.50 to 2.80:1, categorized as speculative. A confirmed reversal would require a daily close above 174,500 points, potentially triggering a short squeeze toward 178,800, 182,700, and 186,600 points with risk-to-reward ratios of 2.00 to 3.50:1.
The article highlights that a decisive breakout above the double resistance zone—defined by the SuperTrend at 173,385 points and the SMA200 at 174,249 points—would invalidate bearish scenarios and shift momentum toward the upper targets.
