Small Cap Growth (VBK) - Time to consider?
The VBK small cap growth ETF is showing 305 price target on Stockcharts.com P&F, which would be 32% above Friday 2/3 close.
On the monthly Chart (not shown) VBK has posted a .618 retrace from 3/20 the low to the 11/21 high; .382 resistance is the next level on the monthly is 236.68.
On the daily chart (not shown), we have a 21/50 EMA daily crossover, but the 50 day EMA is still well below the 200 day EMA. The money flow index on the daily has been tailing off since 1/17 while riding an over bought RSI(9) since 1/17.
The weekly chart (shown above) shows VBK entering into Ichimoku cloud resistance, and a weekly resistance at a Gann confluence at 238.63. The latest up leg from 10.10 looks extended (blue Point D is near 1.61). The positive is that the VBK has soundly rejected the downward regression channel from 2022 high to low.
Small caps have in general less pricing power than the large caps(unless they hold a special niche). Passing on price increases to compensate for higher input costs can be more difficult. Easing inflation will benefit small caps, but tight labor market does not.
I do not see a 305 target on VBK anytime in the near future. I also do not see (unless there is a Swan event) lower lows. I do see sideways action inside the red cloud for the near future. Small cap growth is not for me unless I find one of those niche situations with superb financials.
On the monthly Chart (not shown) VBK has posted a .618 retrace from 3/20 the low to the 11/21 high; .382 resistance is the next level on the monthly is 236.68.
On the daily chart (not shown), we have a 21/50 EMA daily crossover, but the 50 day EMA is still well below the 200 day EMA. The money flow index on the daily has been tailing off since 1/17 while riding an over bought RSI(9) since 1/17.
The weekly chart (shown above) shows VBK entering into Ichimoku cloud resistance, and a weekly resistance at a Gann confluence at 238.63. The latest up leg from 10.10 looks extended (blue Point D is near 1.61). The positive is that the VBK has soundly rejected the downward regression channel from 2022 high to low.
Small caps have in general less pricing power than the large caps(unless they hold a special niche). Passing on price increases to compensate for higher input costs can be more difficult. Easing inflation will benefit small caps, but tight labor market does not.
I do not see a 305 target on VBK anytime in the near future. I also do not see (unless there is a Swan event) lower lows. I do see sideways action inside the red cloud for the near future. Small cap growth is not for me unless I find one of those niche situations with superb financials.