Last week's weakness in the iShares Brazil ETF (EWZ) managed to hold support along its near term 2-1/2 month support line now at 72.90. More importantly, the major up trendline off of the March 2009 low at 31.14 also cuts across the price axis in the vicinity of 73.00, which helped to thwart near term corrective weakness.

As long as 73.00 support down to the prior pullback pivot low at 71.13 continues to contain weakness, my overall work on the EWZ technicals will remain "friendly." Aside from the technical conditions, it is encouraging today that despite a sixth consecutive down day in crude oil prices, the EWZ has turned up in sympathy with the bounce in global equity markets. With my near-term work extremely oversold in oil, suggesting that an upturn is imminent, the EWZ should get the benefit of both equity and oil strenghth in the upcoming hours.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.