$RYH – ETF
The ETF RYH has returned around 15% this year as any threats from the Trump administration has proved unfounded or ignored. Yesterday saw the first signs of exhaustion in the ETF as it posted a Bear Cage signal. This is enough to prompt some profit taking on any long positions but the question is whether a turning point is also occurring. Therefore we look at the top holdings and see where they are at.
Beginning with RYH the Bear Cage signal has appeared but it is not at Energy based resistance (Lines). The weekly black line will need to move above price to signal a more powerful barrier is forming.
Range Relativity measures multiple time frames for targets and over-extensions. This week the Blue (monthly) and Black (weekly) are above the upper quarterly (pink). This flags an overextension that would be confirmed and primed for a corrective move if price close the week below the lower black line at 164.53 where price closed close to. It would be the first time on the entire chart.
Turning to the top holdings the first is Vertex (VRTX). The chart posted a negative UFO last week and has retreated somewhat but it was not at a resistance level, so was simply a warning. That is in contrast to last December where buy signals appeared at what was a weekly and monthly (black and blue) zone of support.
Range Relativity shows that price topped out at its quarterly target last week also from an overextended state as the weekly and monthly upper levels were above the quarterly point.
Cerner (CERN) spiked higher on positive news recently but has since sported an Inside Bar pattern which shows a lack of momentum. This has cause a shift in what was weekly support to resistance, whilst a monthly level lies above that, indicating major headwinds above.
It is also overextended.
Centene (CNC) has moved above its final Energy based resistance and flagged a Bear Cage as well.
This exhaustion married up with Monthly and Quarterly Relativity. It is below it weekly lower level for the first time this year.
PerkinElmer (PKI) is very strong and has no resistance at present.
Price has reached its annual target but is not yet overextended as Blue and Pink are below red.
HCA is the poor relation and is now trapped by the zone of support below that held last week, and the move of the weekly and monthly lines to above price and therefore strong resistance.
Intuitive Surgical (ISRG) is also very strong with no resistance.
It is overextended but resistance will have to move to the top of the trend.
Varian (VAR) gapped higher last week on news and is in breakout mode. Note the the buy earlier on in the year when a Bull Whip signal appeared at the monthly support.
It has still to get near semi and annual targets.
Idexx (IDXX) broke out in February with a PowwerPlay signal, but now is showing the first signs of a loss of momentum as weekly energy moves above price. The top was the converse of PowwerPlay it posting a SlammDunk.
It is also overextended.
Cooper Companies (COO) is also in Breakout mode.
In spite of its strength it is not overextended and still is some way away for its annual target.
In conclusion whilst the ETF has flagged a warning sign, only one stock is actually negative. Four stocks have moved resistance to the top of the trend or reached major timing targets, but it will be the strongest four PKI,ISRG,VAR and COO) that we’ll need to see signs of exhaustion before a topping process on the whole sector can be called.
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