Short term Elliott Wave View in XLV (Healthcare EtF) suggests the rally from March 5, 2021 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from March 5 low, wave 1 ended at 115.79 and pullback in wave 2 ended at 113.35. The ETF extended higher again in wave 3 which ended at 125.19. Pullback in wave 4 ended at 121.38 as the 1 hour chart below...
Spotted a fractal on ABT corroborated with the respective sector (XLV). This is perfect for an earnings play.
The pattern recognized is a running flat Elliott Correction waves. The formula: impulse, correction and impulse.
Since, I am analyzing some health care stocks, I find it irresponsible to overlook the sector. The market in general has been volatile for past two weeks for now. Also, the news that are coming out are not boosting trader's confidence in the market. We have SEC looking to delist Chinese stocks and late last week one of the hedge funds defaulted on their margin...
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Think for a moment. With the society becoming more affluent, people are eating more meals, having the choice to exercise or not, have more entertainment concepts coming up and people are sleeping later and later into the night .Naturally, their health is at stake. And with old age creeping up year on year, medical care is a NECESSITY...
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We see a cup and handle swell as a bull flag. Very bullish patterns.
looks like resistance turned into support at 108.
Health Care etf is also a very good way to diversify your account and rotate into underperforming sectors.
Gappy under price so beware. Gaps overhead cause R. Gaps underneath can provide support but can also fill )o:
There is also several bearish rising wedges in the yearly chart but XLV has broken the bottom trendline of each to some degree
Rising wedges are usually bearish and resembles a channel but both lines slope up and narrow at the apex
A RW causes an issue...
The 200ema has been tested several times, and has worked very well as a mid-term support level.
Risk reward ratio is easy to set-up with a 3:1 ratio approximately.
Sector & Industry Analysis
It is important to note that the industries inside the sector have different performance, which has been very useful to analyze what the market thinks...