Over the last five sessions:
Leading: Finance – Commercial Loans, Real Estate Development/Operations
Lagging: Insurance – Life, Banks – Southeast.
Symbol: BPC.BR
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 is testing resistance at its 21-DMA (4,166) after a sharp pullback
to and a subsequent bounce off its support at the rising 50-DMA. The Nasdaq is testing resistance at its 50-DMA (13,578) after a rally
across oversold growth constituents. The distribution day count remains elevated at nine and five, however, this week two days will expire
on the S&P 500 and one on the Nasdaq.
Banco BTG Pactual
Key points from this report:
- The stock is breaking out of a 14-week cup base.
- Fundamental ratings: SMR Rating A. Composite Rating 85. EPS Rank 72.
- Technical ratings: RS Rating 85. Up/Down Volume ratio 2.1. A/D Rating B+.
- Institutional sponsorship increased 79% y/y to 1,081 funds in March.
Global Focus Emerging
The CSI 300 rose 0.46% on lower and less-than-average volume this week. The market remains in an Uptrend Under Pressure with the number of distribution days rising to five. The index remained above the 50-DMA (5,067, -1.3%) and 21-DMA (5,098, -0.7%), and is facing strong resistance at its 100-DMA (5,235, +2.0%)
Global Focus Emerging
The CSI 300 rose 2.29% on higher but below-average volume this week. The market was shifted to an Uptrend Under Pressure Tuesday with the number of distribution days rising to four. The index traded around its 200-DMA (5,000, -2.2%) but retook its 21-DMA (5,055, -1.1%) and 50-DMA (5,080, -0.6%) Friday on much higher volume, with next resistance at the 100-DMA (5,226, +2.3%).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 pulled back off all-time highs to close just below its 21-DMA (4,157).
The Nasdaq, which was already trading below its 50- and 100-DMA, dropped 2% in the morning but staged an upside reversal to close
flat. It remains just below its 100-DMA (13,424). Indices still have six and five distribution days, respectively.
Global Focus Emerging
The CSI 300 fell 2.49% on higher volume this week. The market remains in a Confirmed Uptrend with the number of distribution days rising to three. The index fell below its 21-DMA (5,070, +0.2%) and is testing support at its 200-DMA (4,993, -0.1%), with next support at ~4,900 (-1.9%). Immediate resistance lies at its 21- DMA (5,062, +1.3%) and the declining 50-DMA (5,120, +2.5%).
LATAM Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- Brazil’s Bovespa benchmark declined 1.4% on high volume last week. Although the index added two distribution days last week, it remains in a Confirmed Uptrend for now. We see support near the rising 100-DMA (117,000).
- Mexico’s benchmark declined 2.2% last week. The market remains in a Confirmed Uptrend with three distribution days. Support level: 50-DMA at 47,205.
- The number of Focus List ideas in Latin America remains at nine. Pet Center (PCC.BR; PETZ3:BZ) and Rede D’Or (RD2.BR; RDOR3:BZ) are actionable. Banco BTG Pactual (BPC.BR; BPAC11:BZ) is building the right side of a cup base.
- Stocks of interest that are setting up include Locaweb (LSD.BR; LWEB3:BZ), Equatorial (EQO.BR; EQTL3:BZ), Duratex (SAT.BR; DTEX3:BZ), Sendas Distribuidora (SDO.BR; ASAI3:BZ), Vamos Locacao (VLD.BR; VAMO3:BZ), Banco Bradesco (DC4.BR; BDES4:BZ), Fibra Uno (FUN.MX; FUNO:MF), and Ienova (IEN.MX; IENOVA*:MF). Additional names are listed on page 3.
Global Focus Emerging
The CSI 300 fell 0.23% on slightly higher but below-average volume this week. The market remains in a Confirmed Uptrend with the number of distribution days rising to two. The index trended upward and challenged resistance at its 50- DMA (~5,146, +0.4%), with next resistance at its 100-DMA (5,223, +1.9%). Immediate support lies at the 21-DMA (5,072, -1.0%).
Global Focus Emerging
The CSI 300 rose 3.41% on higher but below average volume this week. The market was shifted to a Confirmed Uptrend Monday as the index rose 2.43% on much higher volume and broke above the 21-DMA. The index managed to hold above its 21-DMA (~5,050, -1.7%) for the following four sessions, with next support at the 200-DMA (4,975, -3.1%). The next level of resistance lies at the declining 50-DMA (~5,200, +1.3%).
