The rising wedge on the monthly chart of the Mexico benchmark index continues to flash blinking red lights.
Back in March, many traders caught on to the raging but mature bull that had become Mexico’s stock market. However, the time to be bullish on Mexico was probably over a year ago, with the country manifesting its own destiny.
And just as it became obvious Mexico was a monster, you had to keep in mind that they do not ring bells at the top when things start breaking good.
Updating the monthly chart, below, the rising wedge “throw over” previously discussed is still playing out (see above posts for details and explanation). At this point, a bounce should probably materialize.
But I would be actively seeking out a short entry via the cousin to the Mexico benchmark, which is the EWW ETF traded in America.
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The cousins were some tough hombres to overcome.
Mr Nieto has a tough fight on his hands to continue to move things forward. The fight over the privatization of PEMEX can be seen as one indicator of his overall success or failure. This FT blog post might be of interest: Mexico oil reform: in the pipeline? | beyondbrics | FT.com http://on.ft.com/1al15Yh via @beyondbrics
Thanks!
reminds me of this countries monthly rising wedge throwover