Don't Ignore This Chart!

Technology And Internet Stocks Leading Today's Advance

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Many traders are believing the Dow Jones U.S. Internet Index ($DJUSNS) is dead money and for the past 18 months or so, that's been mostly true.  The DJUSNS has been unable to sustain a move above 900, testing that level in March 2014, September 2014, March 2015 and April 2015 without any breakout success.  While that certainly has left many traders frustrated, it would be unwise to give up on the group.  In fact, a very bullish case can be made for internet stocks based on their long-term ascending triangle pattern, the breakout of which would likely send lots of technical traders scrambling to buy shares.  A confirmed close above 900 would "measure" to 1075, which gets very exciting if you own shares in this group.  Take a look at the pattern and its measurement below:

Stocks like Facebook (FB) and InterActiveCorp (IACI) are breaking out today to lead the charge.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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