VHT $VHT Health Care Initial ShortVHT $VHT Health Care Initial Short. TP and SL on chart. Move SL on TP. After TP2, trail with 0.5ATR step and 1.5ATR offset.
VHT
VHT at a good level to add to investmentVHT is the ticker for Vanguards healthcare ETF that seeks to track the MSCI US IMI Health Care Index. I use this ETF as part of my long term investing strategy to gain exposure to the US healthcare sector which I believe will experience greater growth and lower drawdowns then the general market over the next 20-30 years. The reason I believe this is because populations are ageing in combination with unhealthy lifestyle habits. This has lead to people living longer in conjunction with chronic or complex medical conditions that require advanced and expensive treatments to manage them. As with any long term investing strategy it is not especially useful to attempt to time the market but it is helpful to make additional purchases at reduced prices when headwinds cause market sell offs. I believe VHT is at such a level now, it has been unable to break below previous resistance turned support and is sitting just above the 200 day moving average. While the price may still move lower as there are considerable market headwinds currently, I am happy to continue to purchase additional equity in this ETF as it moves into any future support zones.
Evolution of VHTThe actual evolution of VHT looks the same as the end of 2018? ... maybe 173 will be a good support, we will maybe see VHT touching this support couple of times before breaking 194.86 and then reaching 210.40 on the first or the second quarter of 2021?
VHT repeating patterns moving into a wedge.We have a repeating set of triangles that have moved into a broader triangle. Each of the triangles are roughly the same length and the move as the first ended is very sudden. If this is a repeating pattern we will be looking for a spike in volume as the move begins. The move should begin either in the next candle or the one thereafter, afterwards I would begin to think that the pattern has become too long and will fail.
So I’m looking for in the next two candles for the upper downsloping trendline to be broken , price action to remain above the 20 weekly MA, price to break the green resistance line at 1.675 and for a volume spike to occur. All at the same time. Not much to ask for really.
Failure will be price action breaking below the lower blue upward sloping trend line and the red stop line at 1.50.
I will point out that there has been an overall decrease on volume at the moment which doesn’t concern me. My philosophy is that price velocity increases on either increasing or decreasing volume. It doesn’t happen on flat volume so this is still in play despite the drop in overall volume at the moment.
