Brazil’s Market Momentum Builds. 3 Stocks With Bullish Charts

Stock market data displayed at the exchange in São Paulo. (Victor Moriyama/Bloomberg)

Key Points

About This Summary

• The iShares MSCI Brazil ETF has risen 38% year to date, outperforming the S&P 500 by more than 3-to-1.
• Petroleo Brasileiro has gained 10% over the past month and offers a dividend yield near 10%.
• Embraer is up more than 60% and Telefonica Brasil has surged 65% this year.

As U.S. equity markets continue to perform well, many international markets are doing even better. Take Brazil. The iShares MSCI Brazil ETF is up a robust 38% year to date and offers a generous dividend yield of more than 5%. On a relative basis, EWZ is outperforming the S&P 500 by more than 3-to-1, demonstrating healthy appetite for Brazilian stocks.

This momentum appears poised to continue. In recent weeks, the ETF’s 200-day simple moving average (SMA) has turned higher for the first time since Q2 2024, often an early signal of a trend reversal with staying power. Additionally, EWZ is riding its first seven-week winning streak in more than two years, further underscoring the strength of the move. Brazil’s outperformance looks likely to persist into the year-end.

The iShares MSCI Brazil ETF was trading at $30.73 Thursday.

Brazil stocks show solid strength versus the S&P 500 since start of 2025.

Petróleo Brasileiro, the energy giant, has come to life with a 10% gain over the past month and currently offers an attractive dividend yield near 10%. This week alone, the stock is up nearly 7% and notably reclaimed its 200-day SMA for the first time since April.

There are several bullish developments to admire. In May, Petrobras broke out above a bear flag pattern, and as is often seen with failed breakdowns, the reversal has been swift and forceful. The stock now sits just above a $13.36 double bottom breakout pivot, reinforcing the shift in trend. A continued move higher could target the $16 area by year-end. As long as the price holds above the $12.50 level, the momentum remains constructive.

Petrobras traded at $13.39 Thursday.

Petrobras forcefully recapturing its 200 day simple moving average.

Embraer, a leader in aerospace and defense, is having a banner year, up more than 60%. Strength is nothing new as the stock has been steadily making higher lows over the past two years. Currently trading just 3% below its 52-week highs, Embraer has been consolidating near the $60 round number since early July, the fourth time it has tested this area. The feeling is it is gaining more confidence at this level.

This prolonged digestion has shaped a bullish ascending triangle pattern, signaling mounting buying pressure. A decisive break above $61 could trigger a measured move toward $75 by early 2026.

Embraer was trading at $59.07 Thursday.

Embraer’s chart shows improved staying power near the round $60 level.

Telefónica Brasil, a telecom services provider, has surged 65% year to date and offers a solid 2.3% dividend yield. The stock currently trades just 4% below its 52-week high and has shown impressive consistency in 2025, with no losing streak lasting more than two weeks.

After breaking above a short cup base pivot at $12.06 on Aug. 7, VIV is now presenting a compelling add-on buy opportunity. Enter on strength with a buy stop above the bull flag trigger at $12.75. The year-end price target stands at $15, reflecting continued upside potential.

Telefónica Brasil was trading at $12.38 Thursday.

VIV chart shows steady bullish progress since the early April lows.

Write to Doug Busch at douglas.busch@barrons.com