Sunday, March 19, 2017

I Understand Everything Else Looks Overbough, But Telecommunications (IYZ) Is Making Moves

I made a very speculative call on Telecommunications ETF IYZ over a month ago and then reversed just two days later. In my defense I did say it was speculative and certain thresholds needed to be met in order to class it as a genuine bullish turn, and so the same warnings apply here. What I am seeing here that I like more than what occurred a month ago is a stronger crossover on my momentum indicators. Furthermore, the fall from July of last year to November was about $5.00 which is about what we are seeing here with the most recent fall starting at the beginning of the year. Overhead resistance is at around $33.50.
Even on the 30 minute chart we've had some nice bullish EMA crossovers with the trend closing in on the EMA(233). Next week amide all the doom-and-gloom that other over-bought sector ETFs are currently experiencing IYZ looks to be a possible sea of calm in an ocean of gathering storms.