Wednesday, March 9, 2011

IYZ Telecom Sector Weekly Chart

IYZ telecom sector weekly chart placed a negative divergence top and is rolling over. Price may be placing a right shoulder now, which can fill that gap left behind at 23.5; that will close up any loose ends, and then she will be good for some extended down side moving forward. Price successfully tested the 20 MA at 23-ish, but the chart says it will take it out in the near future, it is simply a matter of whether price wants to fill that 23.5 gap right away or wait a few days.

Stochastics sitting on 50% level so which ever way it goes tomorrow will provide a valuable hint on price movement direction. The weakness of this chart may be forecasting that sales estimates of iPads, tablets, smart phones and other gadgetry may be greatly overestimated. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.

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