This chart may hold the key to markets: Technician

Predicting what global markets do next may come down to one specific currency, according to one technician.

On Wednesday, Rich Ross of Evercore ISI said the Brazilian real is approaching a key level, which could mark the beginning of a turnaround for emerging markets, commodities and stocks around the world. The plunge in commodity prices over the past year has weighed on emerging markets, since many of those countries depend heavily on commodity exports.

But as commodities have bounced this year, the renewed strength could be set to take emerging markets and equities higher, Ross said.

"As commodities have strengthened ... that's eased pressure on high yield and allowed the market to have a very nice counter-trend advance here," he said Wednesday on CNBC's "Trading Nation."

Specifically, Ross recommends watching the real, which has fallen steeply against the U.S. dollar in the last few years. Now, the real is approaching an important technical level at its 200-day moving average at 3.68 per dollar, he said.

"You're testing a key level of support on the charts, which has held for the entirety of the decline in crude oil," he said. "If we were to break back below that 200-day moving average, it could set up a very convincing buy signal for the Brazilian real."

Read MoreThe problem with the commodity bounce: 'There's no juice there'

However, Erin Gibbs of S&P Investment Advisory remains more cautious about adding portfolio exposure to Brazilian assets. As a major trade partner with China, Brazil suffered from slowing demand from the large commodities consumer, Gibbs said. As some worries over China have abated, Brazil has seen a major comeback.

"As we've seen some stabilization about concerns on Chinese growth ... they've really had a huge recovery," she said Wednesday on "Trading Nation."

Brazil's Bovespa index has risen 12 percent in local currency this year, as many markets around the world have tumbled. However, the overall economic picture still looks grim for Brazil, she said. According to Gibbs, the country's GDP growth is expected to contract 3.5 percent this year.

"We're still looking at some major concerns within the market, though it does look cheaper at this point," Gibbs said.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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