EWZ is currently overextended; holding support through upcoming election/cycle timing creates a potential buy setup.

Today, I present to you a video from " Investor Center" highlighting the EWZ fund. This is the iShares exchange-traded fund for Brazil.

The EWZ fund saw a 13.4% increase today. This movement is almost entirely due to the Brazilian elections. I thought it would be interesting to see how this movement fits into the artistic image of the EWZ box.

We will start with the monthly chart. This is the monthly chart for EWZ.

We are in the final month of the menstrual cycle timing window , two months past the bottom, and are already trading above some important previous cycle highs thanks to this move.

Our monthly reflex detector has turned positive. The next higher level is the long-term 61.8% extension at 45.72, and then the previous cycle high from here in January 2020, which is at the 48.37 level.

Moving to the weekly chart, we are in the upward phase of the cycle here after this synchronized low on a monthly and weekly basis. A huge upward gap. The momentum is now positive.

I have set the extension levels from this timeframe, in addition to what I mentioned from the monthly chart. This historical high is slightly higher than this average range at 127.2 here at the top.

Finally, we will move on to take a look at the daily chart. Within this timeframe, we have large dominant cycles that are divided into secondary half-cycles . Last week, we formed the low of the secondary cycle right here and moved strongly upwards based on election news. The momentum has shifted to positive.

Now, as I mentioned, there will be a runoff election in Brazil at the end of this month, which roughly coincides with this time period here, so I'm not going to get into it now.

Firstly, this is excessively extended at this stage, and secondly, there are risks associated with the event.

However, what we will do is keep this on our list to check back on it again in two weeks; If the support zone can hold up during the timing of the cycle and the election, it could provide a good buying opportunity .