I think we are going to have a false break out next week and then a hard pull back to uptrend line. This market loves to set up bears and bulls traps. Be careful.
The chart posted is that of the IGV INDEX AND ETF . Simple if we break it the bear market has 35 % more downside and into mid june 2023 BUT WE RALLY MUCH MORE then the US$ is in freefall.
Based on price action I believe the IGV will continue to fall as earnings approach and a continued risk of high inflation we could see some continued selling off of the IGV.
It looks like IGV (tech software sector) has reached a bottom for now. It touched the uptrend line dating back to 2009. There is a lot buying volume in the last couple of weeks. It could be a good time to start buying into the top 3 holdings (MSFT, ADBE, CRM) of this ETF.
Please evaluate own risk before trading or investing into this ETF.
Conviction: 3/5
Better to wait until we break above downtrend resistance line, but overall looks strong
seemed to bounce off 100WMA
RSI-W at historical buy points
bounced off (for now) 50% retracement
RISKS
Very expensive relative to historical trend
IGV, a Software based ETF, is currently at the 200sma which has shown support before. It is also at horizontal support from February highs.
Trade setup is drawn in chart. The risk-reward-ratio is above 4.
Top 10 holdings
MSFT (10%)
CRM (9%)
ADBE (9%)
INTU (7%)
ORCL (6%)
NOW (5%)
ADSK (2%)
PANW (2%)
SNPS (2%)
WDAY (2%)
Good luck.
0. We love this ETF;
1. We have done very well since the end of March with this;
2. One of our best kept secrets;
3. $300 Entry, or whenever, and $400 all day long;
4. Top Holdings:
IGV Sectors
Software75.86%
IT Services & Consulting14.98%
Internet Services7.36%
Toys & Juvenile Products1.09%
Business Support Services0.21%
Integrated...
