IYT transportation index daily chart shows the sell off that was expected due to overbot conditions, rising wedge and negative divergence in February. An H&S is in play now with a head of 96, neckline of 89.0-89.5, so that targets the 82-83 area where horizontal support exists as well as a gap fill. There are some gaps left above so price should move out sideways from here, perhaps close some loose ends at the 91 gap, and then head lower with extended selling in the weeks and months ahead allowing the H&S to play out.
Interestingly, Dow Theory may dictate that the Dow Industrials will follow. Also of interest is that the IYT is now under the starting price of the year, 92.32. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.
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