Housekeeping
The last couple
of columns, we have been discussing some Exchange Trade Funds (ETFs). Specifically
we were looking at the Semiconductor Holders (SMH) weekly chart and the Oil
Service Holders (OIH) daily/60 minute chart.
If you recall
we mentioned the big Fibonacci price resistance zone on the weekly chart of
SMH below that would likely act as a cap on this rally. So far it has done exactly
that. In fact, the way this weeks price movement is coming into shape we could
be looking at a bearish engulfing candle pattern. This would suggest further
downside movement. There is a focus support zone from 25.77-26.95. If this area
is violated I would not be surprised if we trade significantly lower. I’m getting
ahead of myself. For now know that resistance held up at 31 and we have an interesting
pattern forming on the weekly charts that would suggest further downside if
it sticks.
Another ETF
that we mentioned on Monday was (OIH). It was completing a Bearish Butterfly
pattern at 61.38 and we warned or notified everyone of a possible short opportunity.
Sure enough we got the opportunity and the ETF gapped down to our first objective
today. I have labeled the next objective on the balance of the position down
around 55. My stop is currently just above yesterday’s low.
Â
Â