Just because it has landed on the support line or resistance level does not mean it must rebound or heads south. As investors, we must know that these are based on historical patterns and past history is not a representation of the current market conditions.
Thus, it is wise to take a small nibble , say 10% of your capital if you had done your homework on this...
Technicals
IHI is breaking out of a parallel channel with an RSI(14) = 69.
A measured move to continue to a new channel, would take us to to $322 approximately.
A close below $285 would negate the current up-trend.
News
ABT has come out with a COVID-19 test kit, which reveals the result in 15 minutes; it will cost around $5.
Long -term investment idea for ETF AMEX:IHI on potential 2nd COVID-19 market drop.
IHI 23% profit / Long trade 225.39 -> 278.02 / TrailStop 26.32 of price amount
Profit: 23%, Risk: 11.5%, Risk ratio = 1/2
Allocation: 15% of the portfolio
All equities from our ideas was fundamentally checked and have good ratios (P/E, Debt/Equity, Sales past 5Y, Profit Margin)...
Healthcare has been a leader YTD, as it has the defensive nature and is gaining momentum on the spread and containment of the COVID. Also, negative sentiment of the healthcare sector regarding the opioid crisis (which seems like a long time ago now), and politicians creating regulations for insurance reform; has now subsided.
Inside the XLV, IHI (medical devices)...
THIS IS NOT READY YET IMO
IHI - Medical Devices ETF
Forming an ascending wedge similar to much of the market. Bearish pattern.
Pattern runs out of room February 2020. Watch closely Jan. 15 2020 going forward for entry.
When Weekly trend turns bearish and gets close to white resistance line for breakdown, this would be entry point.
I will update getting...
