novvoll12

IYT $156.89: Consolidates within a 5-month falling channel

AMEX:IYT   ISHARES TRANSPORTATION AVERAGE ETF
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IYT             has been consolidating within a 5- month falling channel as shown on the weekly chart. While the 155.68 weekly low (April 20, 2015) holds dips, strength back above 157.93 (April 20, 2015 weekly high) would signal a 5-week range break on the upside and trigger further gains towards 165.69 (March 16, 2015 weekly high) near the channel upper bounds. A sustained break above the latter is needed to confirm channel breakout for a move towards 167.80 (November 24, 2014 record high). However, a push below 155.68 would delay bulls and shift the focus towards the 152.03 (April 6, 2015) near the channel support which should hold.
Outlook:
Short term: neutral
Long term: bullish