XSW: 9 MONTH BREAKOUTXSW is breaking out of its 9 month horizontal trading range. Higher highs on noted on the RSI and an uptrend in the MACD.
XSW trade ideas
XSW ETF Long-Term Trading Opportunity 1expect XSW to increase in value to around $170+- Dollar in 6-24 month+-
I have set up an order to buy at $139 per ETF unit for a total of 70 units.
I have no fixed take profit as of now, but a trailing stop loss will be implemented
Stop Loss is around $120+- (will be adjusted accordingly, this is just a rough stop loss, this is more a buy and hold position, so increased buying could occur at these levels).
So why?
20% growth for this number 1 Tech ETF in 2 years from right before covid market crash occurred, in a time when tech boomed, but only 20%, the market as a whole did better than that...
I do not think the price is fair now, I think it should be higher, tech is booming, and if you consider things like the semiconductor shortages starting to get better etc. then I think Tech is a buy...
Also, people going back to work won't make things return to exactly the way it was before, tech will still stay now more in demand than before Covid, although the demand might drop a bit now...
Technical analysis points out we are in an area of a potential reversal, but it can get worse, and we can see $120, but I would still hold even then, and keep on buying. Tech has fallen harder than the market as a whole, more than 20%, so it was hit harder...
this is my 30% reserve I am betting here, so my trailing stop loss will be strict, but if this is not your 30% cash reserve then by all means hold, even if it drops to $120, keep on buying, tech can only grow in demand in the near future...
Possible Parabolic ArcETF but can still ARC
Most Arcs land between to 79% and 62% mark.
Some fall less, some fall more.
This is a weekly chart. ARCs are easier to see on monthly and weekly charts.
Too much green can cause a lot of red on the way down. Unfortunately, nothing goes up forever. A steep green rise is often unsustainable.
Trying to trade an arc of the way down is not an easy task as it will be volatile as a rule. I would think an ETF may be a smidgeon easier to trade than an ARC security though. But this is one of the few ETF ARCs I have seen.
No recommendation
Cup and HandleI like trading ETFs and software seems like a winner to me! I am watching this closely. This particular ETF could have a nice reward too.
Target 1: 130 to 145
Target 2: 170 to 180
This one is pulling back right now and if I enter it I would have to play the stop by ear. There is a tiny gap that is bugging me under 99.4. I have found even the smallest gap underneath can come back and bite me in the butt so watching this
I will wait and see how the market unfolds this week
Trade safely
Short Semiconductors ETF for next 6 monthHedge thrue software ETF, please consider Beta (both ETF) for this spread.
