Chart Of The Week, 43% and Climbing [Guggenheim Solar ETF, First Trust NASDAQ Clean Edge US (ETF)]

technical chart trading etf 600X300This week’s chart tells us that the Energy Other sector (or alternative energy sector, which consists primarily of wind stocks and solar energy stocks) is likely to continue to gain strength and outperform other sectors. It also tells us that the risk level in the sector is low.

This is a chart of the sector’s Bullish Percent Index, which shows the percentage of stocks in a given group on buy signals.

The Energy Other sector’s BPI is plotted on a Point & Figure chart, which looks like a complicated tic-tac-toe game to the Point & Figure newbie. But it’s really quite simple.

The most recent column is on the far right (highlighted in yellow). When the indicator reverses down and declines, a new O column forms. When the indicator reverses up and advances, a new X column forms.

I drew black rectangles around the years at the bottom and around the months of May and June within the columns (5 and 6).

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *