Industrials Are Breaking Out To The Upside
Dragonfly Capital | Dec 19, 2012 01:37AM ET
I hear you all chuckling. The Industrial Select Sector SPDR, (XLI), broke out over a week ago. Yes I know that. The daily chart below shows the breakout, back test and move higher. Old news. But have you looked at the longer time frames?
That is where the news, and real money, is to be made. The weekly chart below shows a break of a 18-month long symmetrical triangle this week. The target for the pattern break is a move to 46 nearly 20% higher. And it has support from a rising and bullish Relative Strength Index (RSI) testing 18 month highs itself.
And the monthly view (bottom) is looking very strong as well, less than 2% from breaking above 5-year resistance. The monthly view also has support from a rising RSI making new higher highs. You can play the ETF itself or the Top 10 Holdings all look good as well with several, Honeywell (HON)Original post
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