Don't Ignore This Chart!

Home Construction iShares Goes for a Breakout

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After lagging the market in October, the Home Construction iShares (ITB) is perking up with a breakout on the price chart and upturn in the price relative. ITB peaked in August and fell into September.  Even though the market rallied in October and early November, ITB did not partake and continued to underperform as the price relative (ITB:SPY ratio) continued lower.  There was a lot of consolidation in the 26.5-28 area as the two moving averages converged and the ETF broke out with a surge the last eight days. The uptrend is resuming and the lows extending back to mid October now mark support. The price relative also turned up as ITB outperformed over the last few weeks. 

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Thanks for tuning in and Happy Thanksgiving!
--Arthur Hill CMT

Plan your Trade and Trade your Plan
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Announcement from the Author

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.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. Learn More
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