Wednesday, April 1, 2009

IYM: Can a chart be too perfect?

IYM (Basic Materials) has had a nice run and has pretty much the perfect chart.  I've been a holder of this ETF as well as some of the components for a few weeks.

I'll defer to Eric for the next sector in the rotation, but this one may have some gas left.  It has been bumping up against resistance (ie, overhead supply) for the last week, but if it breaks out...

... I get a price target of $43 based on the amplitude of the head and shoulders.  Sell-stop would be the 50 dMA or approximately $33.68.

No comments:

Post a Comment