Long -term investment idea for ETF AMEX:IHI on potential 2nd COVID-19 market drop.
IHI 23% profit / Long trade 225.39 -> 278.02 / TrailStop 26.32 of price amount
Profit: 23%, Risk: 11.5%, Risk ratio = 1/2
Allocation: 15% of the portfolio
All equities from our ideas was fundamentally checked and have good ratios (P/E, Debt/Equity, Sales past 5Y, Profit Margin)...
Healthcare has been a leader YTD, as it has the defensive nature and is gaining momentum on the spread and containment of the COVID. Also, negative sentiment of the healthcare sector regarding the opioid crisis (which seems like a long time ago now), and politicians creating regulations for insurance reform; has now subsided.
Inside the XLV, IHI (medical devices)...
THIS IS NOT READY YET IMO
IHI - Medical Devices ETF
Forming an ascending wedge similar to much of the market. Bearish pattern.
Pattern runs out of room February 2020. Watch closely Jan. 15 2020 going forward for entry.
When Weekly trend turns bearish and gets close to white resistance line for breakdown, this would be entry point.
I will update getting...
I try to show an example of the signal Shoulder Head Shoulder, I found the ETF IHI which represents almost perfectly the figure of the shoulder head shoulder. Also, The calculation is made for a short position where the scope is the measure between the head stop and the resistance line and this height is taken for the take profit of the short position
The MACD is slowly turning bullish and the RSI is almost flat or slightly increasing but in a higher level. So there is still demand, but with that mildly bullish MACD, I see it continuing a slightly higher or sideways push till that MACD turns more strongly bullish. That would be a better buy point.