What Could Spark A Rally In The iShares Dow Jones US Telecom ETF

buy-and-holdMorpheus Trading: The monthly chart of iShares Dow Jones US Telecom (NYSEARCA:IYZ) below shows a recent breakout above a significant resistance level at $26 earlier this year.

Since then, the price action has chopped around in a tight range above the prior highs of the last base. A breakout above the recent range could spark a rally to or near the prior highs of 2007, around the $32-33 area:

$IYZ MONTHLY BREAKOUT bullish

Drilling down to the weekly chart, we see a strong uptrend with several higher highs and higher lows in place, along with a rising 10-week and 40-week moving average:

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