Brazil has been in a downtrend since since 2011 and has since declined more than 70%. As you can see in the chart below it found a bottom in September of last year and has been chopping around sideways, bound between the upper and lower red support/resistance lines. Since these consolidations can break either way, as investors you want to wait until you get confirmation before you take a position (on either side). Today we got our confirmation and it was to the downside. Price gapped down through lower support one more than 40% average volume. This combined with the negative slope on the 200dma is supportive of further downside. If this move plays out, the target would be around $16 more than a 20% drop.