Tech Continues to Tout Strong Momentum

Yesterday, we looked at a Daily Price Chart of Zillow Group, Inc., noting the stock’s OBV line is sloping up. This validates the stock’s bullish trend.

Today’s chart is for the Technology Select Sector SPDR ETF (NYSE: XLK).

The XLK ETF seeks investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Technology Select Sector Index.

In seeking to track the performance of the index, the fund employs a replication strategy. Meaning the fund typically invests substantially in all of the securities represented in the index, in approximately the same proportions as the index.

Now, the Daily Price Chart below shows that XLK has been making a series of 52-Week Highs since mid-June.

Plain and simple: an ETF just doesn’t hit a new 52-Week High unless it is in a very powerful uptrend.

Now, as we know, ETFs in a price uptrend do not advance in a straight line. There are always price retracements along the way.

XLK experienced periodic price pullbacks during its strong advance since late March.

Traders can get a lower risk entry point after a 3% to 5% price retracement – the ETF normally resumes its price uptrend after such retracements.

We’ll be sure to continue following XLK as it climbs to new heights, and we’ll continue watching for price retracements.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

The post Tech Continues to Tout Strong Momentum appeared first on Laissez Faire.