Arguments for upside:
- Broke 100 day MA at 132
- Several MAs crossing
- Fundamental tightness supports prices
Arguments for downside:
- Weakening future spreads
- Low volume on advance during past two days
What is the deciding factor?
- Currency rate USD/BRL. Long time highs
- If the USD/BRL retraces more (currently overbought on daily, weekly and monthly time frames), higher prices to come, but fundamental picture for Brazil doesn't really support the REAL to appreciate any time soon
- Broke 100 day MA at 132
- Several MAs crossing
- Fundamental tightness supports prices
Arguments for downside:
- Weakening future spreads
- Low volume on advance during past two days
What is the deciding factor?
- Currency rate USD/BRL. Long time highs
- If the USD/BRL retraces more (currently overbought on daily, weekly and monthly time frames), higher prices to come, but fundamental picture for Brazil doesn't really support the REAL to appreciate any time soon
