Leaving Copacabana and Flying Out of Brazil

P

Rio is a playground for the world’s rich. Club’s, the beach, restaurants and great weather. And Copacabana beach is the crowning jewel. But the rest of the Brazilian economy has been a mess lately. With a heavy reliance on natural resources, it is not a surprise to anyone that the country fell into recession as commodity prices fell. If you have had enough of the Brazil bashing though, there is a chance to fly your portfolio out of the country and take some money with you. Brazil’s Copa Airlines, $CPA, may be ready to take off.

cpa

The stock of the airline dropped 45% over the last half of 2014 as oil prices were sinking. But since mid December it has bounced and recovered 23.6% of that drop. A secondary Fibonacci level. As it consolidates at 103, the technicals of the stock are starting to point higher. Take off may be at hand. The RSI is rising over the mid line and approaching 2 month highs. The MACD is also rising, supporting the upside. Should it continue over 103.50 the Measured Move higher would target a run up to 120. Pack you bags and keep an eye on this one.

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.

 

 

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through December 2014 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Dragonfly Caps Blog