Good morning traders, today I have a chart and technical analysis of our favorite ETF, $MTUM!
I would like to preface this by stating all green lines represent supports as well as al red lines represent resistances
MTUM has had quite the significant first half of 2021, and I believe due to the following that we are in for more.
Recently, at the beginning...
Pretty amazing nobody is talking about the #momentum crash that erased 3 year gains of this strategy. I guess the lesson here is as much as we like to chase things on the way up, never underestimate the power of value and reversion to the mean! $PDP $MTUM
MTUM is the ETF ticker which tracks momentum.
The pink lines show a megaphone pattern, which is bearish when tilted up. education.howthemarketworks.com
The inner white trendlines of the megaphone show price hitting the angled resistance.
The angled resistance crosses the current white price trendline on 12/13.
Going back in history with MTUM, inside the megaphone...
If MTUM is a momentum based indicator ETF, and is related to SPY, then the following patterns would confirm SP500 bearish correction is coming.
MTUM is the iShares ETF "Exposure to large- and mid-cap U.S. stocks exhibiting relatively higher price momentum" www.ishares.com
In the pattern we see THERE IS NO MOMENTUM
MTUM pattern has megaphone top.
Looks like MTUM is out of momentum.
This contributes and confirms that SPY should be pulling back. MTUM and SPY are correlated.
Daily view shows megaphone top. (or Broadening Top thepatternsite.com)
Megaphone Top can breakout either direction. Given the tilt of this megaphone, I feel the price is falling backwards against momentum.
Since the slope is too steep,...