Power ETF Setups

March 21, 2022

Chart Reviews

Below is a group of Sector ETF setups marked up charts where most of the information is displayed with short commentary

Ticker: $LIT

Lithium ETF is back up challenging a polarity level it has met a few times before on both sides. It got rejected the last attempt to jump back over, but this time price gapped higher and held the gains through the day. It also shifted the RSI into a new bull range as it moves away from the rising MA bands.  Weekly chart held where it needed to, and is back over the MA bands, but has a way to go before shifting into a RSI bull range.

Ticker: $IBB

Biotechnology is nearing a Kirby that opened on the breakdwon and could get retraced as price gets sucked up into it.  The daily is attempting to shift to a new bull ranges after hanging out just under the line for a while allowing price to flag out and gather the energy for the next move. 

Ticker: $OIH

Oil Services has been consolidating in an ascending triangle for a couple of weeks and is challenging the upper rail.  Chart looks like it has moved a lot already, but the RSI is not overbought here as this looks more like one of my mushy RSI trends. Weekly chart is in a bull range, but still has room on the RSI too.

Ticker: $FDN

First Trust Internet is one of the older ETFs in the space and looks to be trying to make a turn after being out of favor for quite some time.  The weekly RSI is coming off a major oversold level and back above the 9sma on both price and RSI.  A break of the downtrend line and shift to a new RSI bull range puts this back in play as there is not much volume above the level marked. A move over that line keeps this on climbing the right side.

Ticker: $SMH

SMH we covered a couple of weeks ago and it did break higher,  but is now pulling back in what could evolve into an Inverse Head and Shoulders pattern that targets the highs again if it can fire. Yesterday’s RSI Positive reversal gave the look of a truncated right shoulder which would be a bonus showing of strength, but it is starting down this morning and could fill out more like the left shoulder in the coming days.  It may not every materialize, but is worth keeping out eye on it.

Ticker: $ITA

Aerospace and Defense is another ETF we looked at recently, but is set up again to break a small flag higher that could send it catapulting through the larger weekly breakout we have marked.  This large cup breakout would be a big deal on this long-term Cup and Handle pattern we see going back to the Covid crash. Volume is pretty solid across the board as well.

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.