XLV trade ideas
Ascending TriangleGappy under price so beware. Gaps overhead cause R. Gaps underneath can provide support but can also fill )o:
There is also several bearish rising wedges in the yearly chart but XLV has broken the bottom trendline of each to some degree
Rising wedges are usually bearish and resembles a channel but both lines slope up and narrow at the apex
A RW causes an issue with supply and demand due to lack of healthy pull backs. Can be a very long term pattern
An ascending triangle is a chart pattern used in technical analysis. It is created by price moves that allow for a horizontal line to be drawn along the swing highs, and a rising trendline to be drawn along the swing lows.
Ascending triangles are thought of as bullish, but in reality that can bust and break down as well
Just an observation
Top 10 Holdings
Johnson & Johnson
9.45%
UnitedHealth Group Inc
7.59%
Pfizer Inc
5.16%
Merck & Co Inc
4.98%
Thermo Fisher Scientific Inc
4.90%
Abbott Laboratories
4.87%
AbbVie Inc
3.93%
Danaher Corp
3.79%
Medtronic PLC
3.54%
Bristol-Myers Squibb Company
Healthcare Critical LevelTechnical Analysis
The 200ema has been tested several times, and has worked very well as a mid-term support level.
Risk reward ratio is easy to set-up with a 3:1 ratio approximately.
Sector & Industry Analysis
It is important to note that the industries inside the sector have different performance, which has been very useful to analyze what the market thinks of the risk of healthcare with the election coming up.
The following list is the Healthcare Industries with a 6-month performance % move, as well as a some good ETF to follow/trade:
Healthcare Technology --> +56% // have not found appropriate ETF.
Biotechnology --> +21% // XBI (smaller biotech), IBB (large-cap biotech), ARKG (genomics)
Healthcare Equipment --> +19% // IHI
Healthcare Providers --> +5.51% // IHF
Pharmaceuticals --> -1.3% // IHE
XLV: Can Health Care lead the market in Coronaland recovery?I really like UNH in this space. Health insurance names in general seem to want to push higher. Nice inverse head and shoulders here on the daily with what could be
a market bottom. Starting to pick up a bit of biotech as well to compliment
XLVAppears to be a true bearish engulfing candle in the pink circle (a lot of traders use this term too loosely imo). Like this short unless today's high is broken.
Respecting Every Fib LineLook at the retracement, it's respecting every fib line. Look for a breakout coming up
XLV longNice looking ascending triangle, measured move target is 115. Looking like the channel may be the current trend for the next while.
XLVSame as the other defensive sectors posted, if healthcare cant hold 20, then 50/bottom of box is likely.
Healthcare might go this weekThe whole sector looks bullish. $HUM $UNH $ISRG all good setups as well
Health Care ETF Sneaks to New HighsThe SPDR Health Care ETF broke above its pre-Covid highs on July 17. Now it’s pulled back and is bouncing at those old levels. Is a stealth breakout taking place?
XLV has also formed a bullish ascending triangle, which it’s broken to the upside.
Health care is interesting because it lost more than 1 million workers amid the coronavirus lockdowns (according to Labor Department data). It’s not as bad as hotels or airlines, but it was clearly disrupted.
However unlike hotels and airlines, health care is a non-cyclical part of the economy that can still work during a recession. And recent numbers show it might be rebounding quickly. For example hospital operator HCA is up 35 percent in the last month, partially because admittances are rebounding. Equipment providers like Intuitive Surgical and Abiomed have also jumped as procedures resume.
Overall health-care isn’t the most exciting sector. But it is a big chunk of the economy. Like housing, it’s likely to recover much more quickly from the pandemic than other sectors. That may keep the buyers engaged, especially if XLV holds the recent low of $104.43.
XLV vs. SPX - Healthcare vs. S&P 500Relative strength from the Healthcare sector, coming off a failed breakdown in this relationship.
Let's Talk Market Consolidation Targets SPY QQQ XLF XLV June 10Pivoteering the market as we look to be on the verge of the first consolidation in a few weeks
SPDR Healthcare Sector XLV: Retest of $79 for buying opportunityVideos posted below! Have a great day
XLV prepare to Long, double bottom Existing condition:
1. Weekly demand zone confirmed
2. 15 min Chart double bottom formed
Buy 75.5 or better price
Stop: 73.5
Target 1: 81.5; risk:reward=1:3
Target 2: 86; risk:reward=1:5
This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
Sum of my ideas: 1 winner, 1 loser, 4 active, 8 cancelled, 4 pending for condition, 1 analysis only.
Healthcare probably going to take a hit this weekCongress's coronavirus stimulus deal reached Friday night included a provision requiring health insurers to bear the full cost of coronavirus test kits and to waive copays. The federal government will pay the cost for the uninsured. This will probably hurt health insurers Monday, though it might be good for service providers.
Here's another piece of bad news: xenophobia related to the virus has angered the Chinese government, and China’s official newspaper Xinhua published a threat to cut off supply chains for the US pharmaceutical industry. If China followed through on this threat, there could be big US drug shortages, which would be bad for pharmaceutical and healthcare companies.
The whole economy will be down this week due to expanding quarantines, new travel bans, and the failure of Trump's payroll tax cut proposal, but the healthcare sector may take extra damage Monday as it bears the brunt of the cost of coronavirus testing.
Staying short the XLV Caught between the 100 and 200day SMAXLV likely continues downward price action with Bernie continuing his strength towards the democratic convention. Just my opinion.
XLV
