In addition to the strong uptrend with moving average confirmation, we also see a bullish, 3-month consolidation that has been holding above the rising 10-week moving average, with the past few weeks really tightening up.
That tightening action over a few weeks is typically what we look for in all basing patterns that we want to buy. The longer the tightening price action continues, the more powerful the eventual breakout will be.
Because $IYZ meets our technical criteria for buy entry, we are placing the ETF on today’s watchlist as a potential, intermediate-term swing trade.
This article is brought to you courtesy of Morpheus Trading, LLC.