Power ETF Setups
February 14, 2021
Below are various ETFs that caught our eye during our research process that might be worth a closer look. It is certainly not an exhaustive list, but should give plenty of names to review and develop a plan around based on your trading style and strategies.
Major high pre-breakout setups and current day Breaks
VEGI FCG XOP AMLP PSCE IEZ OIH XES KIE KBWB XLF RYF IYG EUFN IAI XME MOO TOLZ GII IGF
Minor breakouts in a larger range or consolidation in an uptrend
PEJ KRE KBWR JETS AAIR RTM PICK COPX WOOD IYM
Breakout setup from a consolidation after a downtrend
Pullback in Trend
Pullback to potential support zones in an established trend
EMTY RHS REZ
RSI Bull Range Test
Daily or Weekly pulling back to test RSI 40 while in a Bull Range
NXTG AWAY CARZ RTH XLY RCD IYH PAVE FTXR XTN IYT PSCT TDV IGN DRIV TDIV BUG RYT VGT PSI PSCM REMX RWO BBRE RWR
RSI Bull Range Shift
Emerging trend with RSI setup to move over 60 after a Bear Range
IEME EWCO MSOS IHF PPH ITA BDRY LEGR
Extreme oversold showing short term change in character
All downside setups for near term potential weakness.
BFIT ITB PSCC PSL
Below are verious names that caught out eye during our research process that might be worth a closer look. It is certainly not an exhaustive list, but should give plenty of names to review and develop a plan around based on your trading style and strategies.
The Agriculture Producers Fund closed the week at all time highs. All time high breakouts are significant because buyers are willing to hold the security at a higher price than ever before. The weekly chart is in a very strong bull range and never went below the MA bands. As shown by the previous uptrend, it stayed around the 80 level on RSI the entire way. Certainly there is more room for this to run even at all time highs. The daily chart recently tested the bull range but held and made a higher low. The bottom left chart shows an overshoot of a trend line which shows an acceleration to the upside. That was stalled right at the breakout level. The bottom right shows a meaningful acceleration in relative strength on the latest rally as the ETF has outperformed $SPY by over 17% since mid December.
PEJ is a big re-opening play moving out of a double bottom on the daily chart into a fresh RSI bull range, but found some resistance the big volume node. Weekly looks solid after testing the bull range twice and now heading back higher in a large sideways consolidation. A break higher out of it could send a strong leg higher into the summer. The relative comparatives are also making moves on this leg and the gap up last week put it over the flat 200 day moving average. It is fine if we dance with the average for a few days and maybe close the gap, but a hold over the 9 day moving average (orange top left) on the daily. The bottom right chart shows the 65min is pulling back toward teh AVWAPs from recent highs and lows that are converging below price. A hold and reverse there could be a spot to watch for.
XOP broke out to a new high late last week. On the weekly there was a clear test of the bull range and MA bands before moving higher. Looking at the lower right chart we see this breakout breaks a trend line dating back to 2015 and is at that highs VWAP. Holding this breakout shows a clear long term trend change as well as buyers clearly in control. The breakout was on heavy volume friday while other stocks sold off.
RHS broke out early last week and has retraced back to the breakout level. The bull RSI range was rested on the weekly and the daily, both of which held. Relative strength has accelerated as shown by the bottom left chart. The bottom right chart is a 65 minute chart and it shows a flag pattern forming at the previous breakout level. It should resolve one way or another very soon.
SPDR S&P Transportation is testing the weekly bull range while currently in a daily bear range. It has made a lower low on the daily and was rejected at the 50 day moving average as well as the VWAP from the highs. The bottom right chart shows a weekly chart with bollinger band overlays. After a strong uptrend, XTN is trending sideways as no move outside of these bands could hold. We’re approaching the lower band again after getting rejected at the middle line. The weekly RSI test, rejections at the MA bands, VWAP and 50 day moving average all combine to make this a short potential for this week.
MSCI Global Select Metals & Mining Producers Fund. Gold was the talk of the town late last week as it may be finally making a move after going nowhere for over a year. That said, Metals and Mining would benefit from a move in Gold. RSI is in a bull range on both timeframes with multiple tests of the 40 level throughout the base. The bottom left chart is a weekly chart with bollinger bands charted with price. The close for the week was outside of the upper band and marks the start of an uptrend if it can hold. The arrow on the left side of the chart shows the last time it closed above the band after a consolidation. The bottom right chart shows a daily chart that perfectly held the VWAP from the March 2020 lows five times.
IGN is testing its weekly bull range as RSI on the daily reversed lower off of its 45 EMA. Price action shows a long inverted hammer from last Friday right at the lower MA band. Looking at the bottom right chart shows a clear up trend with two retracements to the MA bands. The first resolved higher while the second has moved lower. It made a higher low, tested the lower band, and rolled over on increased volume. The bottom left chart shows a significant level that is the lower end of a range and a major VWAP level. The downtrend is likely to stall there before further breaking down, or rallying.
The charts and tickers above are for educational purposes and are not recommendations to do anything. This is just to help show you what we see and then let you take it from there and do your own due diligence. Either build your own trade plan or get with your advisor or broker form one before considering any ideas above.