Don't Ignore This Chart!

Look To This Industry Group For Leadership

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The S&P 500 continues to battle overhead price resistance that's been well established since closing at its all-time high on May 21, 2015.  While a bullish advance typically requires strong and wide participation from many sectors and industry groups, there's one that I'm watching very closely.


Internet stocks ($DJUSNS).

There's a bullish ascending triangle pattern in play on its long-term weekly chart (not shown below) and a breakout on heavy volume would measure to the 1250 level.  Currently, the DJUSNS is at 1086 so that would represent an approximate rise of 15% from its current price.

Before we can consider that potential measurement, we need to see a clear breakout above the 1100 level.  Here's the visual on the DJUSNS daily chart:

The good news is that momentum is beginning to strengthen so a breakout would likely be sustainable.  But I do want to see heavy volume to confirm the breakout after so many attempts to clear 1100.

Happy trading!

Tom

 

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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