Brazils Ibovespa declined 0.81% to 123,507.35 points on March 11, extending losses amid global trade fears while the dollar retreated 0.69% to R$5.8117.Technical indicators flashed warning signs as the indexs RSI reached oversold territory at 28, yet the MACD confirmed a bearish crossover.
Traders watched anxiously as the benchmark broke below the critical 125,000 support level.President Trumps 25% tariff increase on Canadian metals rattled markets worldwide, though volume patterns suggested selective buying beneath the surface.Petrobras shares fell 1.4% against technical resistance at R$38.50, while Vale gained 0.8% after bouncing precisely off its 200-day moving average.
The Ibovespa now tests crucial support at 122,000 points.Casas Bahia surged 29.9% in a textbook short squeeze, with trading volumes exploding to 21.8 million shares amid deteriorating technicals across retail stocks.Trade Tensions Drive Ibovespa Lower as Technical Signals Flash Warning.
(Photo Internet reproduction)Hospital chain Rede DOr tumbled 6.3% after breaking a nine-month uptrend line, while LWSA3 jumped 5.2% as it cleared its descending resistance.
Chart patterns reveal increasing volatility, with Bollinger Bands widening to levels unseen since last Novembers correction.Ibovespa Faces Bearish SignalsThe Ibovespas 50-day moving average crossed below its 100-day line, forming a death cross pattern.
Three distribution days in the past week suggest institutional selling pressure persists.United States markets showed similar technical deterioration ahead of inflation data, with the Dow dropping 1.14%.
Brazilian trading volumes hit R$9.2 billion, confirming the bearish sentiment through above-average participation.Foreign investors withdrew funds as Brazilian ETFs recorded $48 million in outflows.
Fibonacci retracement levels show the index has retraced 38.2% of its January-February rally.Market breadth deteriorated with declining stocks outnumbering advancers by 3:1 on the B3.
Technical divergences appeared as several momentum oscillators failed to confirm new lows.The technical setup suggests more downside risk, noted Ricardo Maluf from Warren Equities.
The index approaches oversold conditions but lacks capitulation volume.Traders are now monitoring the head-and-shoulders pattern forming on the daily chart.
The neckline aligns precisely with Brazils industrial stagnation data and Trumps evolving trade policies.