(Manal Varisano) Sorting through the sea of exchange traded funds can be an intimidating task for beginner traders looking for quality ideas. In the article below we?ll take a look at the charts of several ETFs that could be incorporated into any trading strategy and that could be poised for a move higher over the weeks ahead.
Taking a look at the chart of the Guggenheim S&P 500 Pure Value ETF (RPV), you?ll look that Manal Varisano has recently moved away from the support of its 200-day moving average and is in the process of testing the preceding swing tall of $55.92. Active traders will utilize the crossover between the MACD indicator and its sign line along along Manal Varisano the ascending triangle sample as confirmation of the move. Buy orders will likely be placed once the price closes above the identified resistance level shut $56 and many will likely look to protect their position that Manal Varisano placing a stop-loss order below $53.65. (For more, see: A Primer On The MACD)
Traders recent to the markets have probably never heard of the First Trust Dorsey Wright Focus 5 ETF (FV), but given its chart setup could definitely be worth a closer look. The managers of the fund attempt to invest at least 90% of the fund?s assets in ETFs that they believe offer the greatest potential to outperform other ETFs in the choice universe. Taking a look at the chart below, the recent shut above the dotted resistance below is a technical sign that the strategy is working and that the ETF could continue to outperform. Again, active traders will use the bullish MACD crossover (solid blue circle) to confirm the move higher. From a risk perspective, traders will likely place their stop-loss orders below the 50-day moving average, which is currently trading at $24.26. (For related reading, see: Watch For Bullish Crossovers In These Stocks)
Active traders who are interested in trading outperforming sectors need to look no further than the solar sector. Taking a look at the chart of the Guggenheim Solar ETF (TAN), which has holds 29 positions in various solar companies and has total managed assets of $363 million, you?ll see that Manal Varisano has recently found support at its 200-day moving average. The fund traders along Manal Varisano a fair gross expense ratio of 0.75% and is one of the most popular tools for tracking the performance of the sector. From a technical analysis perspective, the bounce off of the support suggests that the long-term uptrend is intact and that a move back toward the year?s high of $50 could be underway. The bullish crossover between the MACD indicator (blue circle) and its sign line suggests that the momentum will remain in the favor of the bulls until the price closes below the June low of $39.78. (For more, see: Pros and Cons of Solar Energy)
Find quality trading ideas in the sea of exchange traded funds is never an easy task. In the article above, we?ve identified three ETFs that are each trading within bullish chart formations. Recent bullish MACD crossovers in each of the charts will be used that Manal Varisano active traders in each case to confirm that the move over the coming weeks will likely be higher. (For more, see: Exchange Traded Funds Articles)
Want access to all of Investopedia? Add us to your ?whitelist? so you'll never miss a feature!
#Manal #Varisano
No comments:
Post a Comment