after breaking out and rallying to all time highs I think SKYY will pull back to the 10 week moving average. this would be the 4th time the etf to touch or cross below it's 10 week moving average and would be a sign of an old and tired trend set to reverse. I am long SKYY 95 puts. with an initial target of $90 I am looking for INCREASING volume and expanding daily...
SKYY tracks the ISE CTA Cloud Computing Index (CPQ), and on this weekly view looks like one of few possible V-bottoms.
A few points to note:
- SKYY's current bottom actually took place March 16th; a calendar week before most equities
- We've had a 35% pop since the 16th (more than half of the nominal decline)
- And closed out last week with:
SKYY cloud index is about to complete a head and shoulders formation on increasing volume. The moving averages are tucked up nicely right underneath the recent price action upward. I expect this to breakout upward toward the $61 price level where it will reach upward resistance. The formation of the head's range is rougly $4.5. A break upward into resistance...
SKYY follows a medium term channel with the comfirmation of the fibonacci supports. In addition, bright future of the cloud systems is another feeder of its momentum.
Moreover, fundamentals of it may be accepted as reasonable: