Inverse Head And Shoulders In Transports
Dragonfly Capital | Apr 16, 2019 08:21AM ET
One of the key tenets of Dow Theory is that the primary trend is confirmed when the Industrials and Transports make new highs. Both are close to achieving this, but not quite there yet. The Industrials slowly grinding higher. But it is the Transports that show a lot of promise. Just two weeks ago they broke the neckline of an Inverse Head and Shoulders pattern.
This pattern gives a price objective to at least 230 on the Transport ETF, $IYT. That would be a new all-time high. And there are only a couple of hiccups in the way of getting there. The first is the December 3rd high. At just under 200 this level would signal a higher high and continuation of the path higher.
The next is the September 2018 plateau, the all-time high. It is less than 8% away and a move over it would carry great meaning. If it happens it will likely not be the first index to make new all-time highs. But the historical implication will keep price watchers glued to the screen to see it happen, long after the Nasdaq 100 and S&P 500 have achieved the same territory.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.