The Home Construction iShares (ITB) broke out with a gap in mid July and this breakout is still holding. The ETF pulled back into the gap zone, but never completely filled the gap to negate the breakout. The indicator window shows RSI moving into the 50-60 zone and stalling. A break above 60 would be bullish for momentum. Wednesday could be the moment-of-truth because RYL and MTH report tomorrow.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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