Tickers in this article: IYM, COP, CE, AU The basic materials sector is poised for a turn around, and arguable it has already begun. The Basic Materials sector was the strongest over the last month, up 11.66% based on the iShares US Basic Materials ETF (IYM). Here's the outlook for that ETF along with three other stocks, from various basic material industries, that may be in the midst of a turn-around. The US Basic Materials ETF has broken above the steeply descending trendline which extends back to June, having rebounded aggressively off the $62.98 September low. The $73.14 October 23 close is above minor resistance at $72.60 from earlier in the month, and had already cleared resistance near $71 from early September. The October rally is a flag pattern--a sharp rally followed by a tight sideways consolidation. If the price continues to move higher, the flag pattern provides a price target of $80. A drop back below the October 13 low of $70.33 indicates a downside break of the flag and a drop back to support between $64 and $63. The recent strength indicates a longer-term uptrend may have begun, therefore if the price drops and makes a higher low than $62.98, it's a buying opportunity. Refine Your Financial Vocabulary Sign up to receive our FREE Term of the Day newsletter. Gain a better understanding all things financial with technical and easy-to-understand explanations. Click here to begin developing your financial language with this daily newsletter. Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.
|
No comments:
Post a Comment