EMERGING MARKETS-Latam stocks rise but near overbought levels

* Mining company Vale in focus on coming CEO replacement

* Regional indices near overbought RSI levels

* Brazil Bovespa up 0.08 pct, Mexico IPC up 0.28 pct

By Luciana Lopez

SAO PAULO, April 4 (Reuters) – Latin American equities
followed global stocks higher early on Monday after knocking
down technical barriers last week, but a light economic agenda
and some signs stocks were approaching an overbought level
could cap gains for the day.

The MSCI Latin American stocks index (.MILA00000PUS: Quote, Profile, Research) added
0.2 percent, tracking a fifth straight session of gains. But
the index’s relative strength index hit a level that suggested
the index was overbought. The RSI is used in technical analysis
to gauge an asset’s momentum.

Global stocks rose on signs of world economic growth,
although the S&P 500 in the United States faced technical
resistance. [ID:nLDE7330IJ] and [ID:nN04249115]

“It looks like the market is taking a pause,” said Joao
Pedro Brugger, an analyst at Leme Investimentos in Brazil.
After a last week’s flurry of news from abroad and heavy slate
of economic indicators, investors could take a breather, he
added.

Regional indexes broke through key resistance levels last
week. After piercing through 68,000 points, Brazil’s benchmark
Bovespa index (.BVSP: Quote, Profile, Research) now has room to rise until it next hits
resistance around 70,500 or 71,000, Brugger added.

The Bovespa added 0.08 percent to 69,325.67 points early on
Monday. The index notched its highest close in more than two
months in the previous session.

The Bovespa’s 14-day simple moving average looked set to
cross above the 200-day simple moving average during the
session, which could indicate more upward momentum to come.

Shares of real estate developers rose in Sao Paulo, with
PDG Realty (PDGR3.SA: Quote, Profile, Research) up 1.59 percent, Gafisa (GFSA3.SA: Quote, Profile, Research) 1.12
percent and Rossi Residencial (RSID3.SA: Quote, Profile, Research) 1.6 percent.

Helping limit gains, mining giant Vale (VALE5.SA: Quote, Profile, Research) fell 0.21
percent. The stock has been volatile in recent sessions on
speculation over the fate of chief executive Roger Agnelli.
Vale confirmed last week that its holding company would meet to
select a replacement for Agnelli on April 7 from a list of
three potential candidates compiled by an international head
hunter. [ID:nN31285411]

Mexico’s IPC stock index (.MXX: Quote, Profile, Research) added 0.28 percent and hit
its highest intraday levels in two months. The IPC’s relative
strength index came its closest to generating an overbought
signal since early January.

Walmex (WALMEXV.MX: Quote, Profile, Research), the country’s leading retailer, put on
0.56 percent as broadcaster Grupo Televisa (TLVACPO.MX: Quote, Profile, Research) rose
0.98 percent.

Chile’s IPSA index (.IPSA: Quote, Profile, Research) rose 0.15 percent for a fourth
day of gains.

However, the advance brought the IPSA’s 14-day RSI near
overbought levels for the first time since November.

Bank BCI (BCI.SN: Quote, Profile, Research) rose 1.31 percent, but a 0.83 percent
drop in retailer Falabella (FAL.SN: Quote, Profile, Research) helped limit gains.

(Additional reporting by Brad Haynes in Santiago)
(Editing by Theodore d’Afflisio)

EMERGING MARKETS-Latam stocks rise but near overbought levels