A nice and clean zoom of the centerline to the upside. But I expect a retest of the centerline. From there I would like to go long...unfortunately there is no good stop for a directional play - means, I go with a options strategy (RiskReversal/ PutSpread). Resistance at the prior breakout/zoom level (orange). Patience...always have to be patient.
We will see if we have a case to short ITB by end of year or early next spring.
ITB short on speculative housing bubble. Chart shows a HWB (50% Fib Retracement) Inside on smaller time frame 4hr/1day You can find a bearish head and shoulders.
It broke both blue supports this week. Red support may come into play next week. Also it might work on its right shoulder.
It falling out of its rising wedge with RSI diverging for quite some time. Might be a short candidate but we will wait a little longer for assurance (housing sector). Note RSI falling off and a negative MACD.
Home construction ETF has made three attempts to break the 26.67 resistance. Though RSI is showing a potential divergence, rejection by RSI trendline could see this ETF collapse while a break of RSI trendline will definitely see more upsides. Stay tune
STRONG buy if it breaks out on the monthly chart (on a monthly close). RSI and MACD still have to do some catch up. May retest pink line.
If using ITB as a proxy for housing market, it appears to be rolling over. If that is the case, how long and how high can Home Depot stand?
Top After April's Rising Wedge Breakdown. $XHB
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