In today’s analysis we are going to be analysing our first ETF.
It was picked up by my custom Break-Out Stock Screener.
Conditions for a stock to be picked up by the screener include:
- 50 Day MA is Above 200 Day MA
- Price is within 2% of breaking out over the 52 Week high.
As we can see from the graph below since 2008 we have seen a steady incline up until 2015, then in 2015 we started to see sideways movement bouncing between the 6,000 and 7,500 range. Numerous attempts were made to break through the 7,500 resistance area and each time it failed and retraced back to the 6,500 and 6,000 areas.
The question now remains, when do we buy?
Do we buy now hoping that the 7,500 area gets broken or wait for a discounted price and go in at the 6,000 area?
Looking at the graph zoomed-in, we see a rejection of the 7,500 area a couple of days ago and today’s candle has set the tone for another attempt at this level. Should this level break we could see the price heading to the next target at 8,000. But another failure to break this level and we could see the price back at the 6,500 or 6,000 areas.
Although ETF’s are generally stable long term investments if you had invested in the Indi mid 2015 , I am sure you are wondering when we going to be seeing that steady incline curve again. I am sure for the long term we are going to be seeing gains but its going to take a strong break-out of that 7,500 area to put it back on the winning path again.
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*All information in this article is the author’s opinion and is for educational purposes only. It does not constitute investment advice or a solicitation to buy or sell any financial instrument. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.