IYT
FedEx StrengthStrong Weekly Englufing Pattern. Additionally, MFI indicates a Bullish Divergence. It is showing continued underlying strength
IYT bearish – Potential to test August’s 128.26 lowIYT 139.46 bearish – Potential to test August’s 128.26 low
IYT has been consolidating within the wide range between August’s 128.26 low (August 24, 2015) and the recovery high at 149.86 (September 14, 2015). Given the strong bearish momentum, there is potential to see a retest of the 128.26 low near 38.2% of the 70.82/167.80 (October 2011 low/November 2014 high) rise. Below lies the 200 week moving average currently at 123.69. The 142.72/146.97 resistance zone (July 6 low/September 21 high, 2015) which houses the 50 day moving average currently at 144.76 should cap bounces. Bulls must reclaim the area to stabilize the structure and improve the outlook for 149.86.
Outlook:
Daily: bearish
Weekly: neutral
IYT $155.87: Consolidates near critical support zoneIYT rebounded off 152.03 (April 6, 2015) back above the 154.02/154.02 3-1/2 month range support area to rally to 160.29 (April 23, 2015) before ranging. While the 153.39/154.02 support zone holds dips, there is scope for further upside. A clean break back above the 157.39/158.48 moving average resistance levels would signal return of strength and open 160.29. Clearing the latter would confirm extension of the 4-week upleg to open 165.00 (March 20, 2015 high) near the range ceiling. Only a decisive breakdown below 150.23 would signal topping.
Outlook:
Short term: neutral
Long term: bullish while above 153.39/154.02
IYT $156.89: Consolidates within a 5-month falling channel
IYT has been consolidating within a 5- month falling channel as shown on the weekly chart. While the 155.68 weekly low (April 20, 2015) holds dips, strength back above 157.93 (April 20, 2015 weekly high) would signal a 5-week range break on the upside and trigger further gains towards 165.69 (March 16, 2015 weekly high) near the channel upper bounds. A sustained break above the latter is needed to confirm channel breakout for a move towards 167.80 (November 24, 2014 record high). However, a push below 155.68 would delay bulls and shift the focus towards the 152.03 (April 6, 2015) near the channel support which should hold.
Outlook:
Short term: neutral
Long term: bullish
AAWW High Flying Atlas Air World WideThis is the daily chart showing the trade set up. This may be my only opportunity to get a pull back to add b/4 this takes off to cruising altitude. I'll attach weekly, monthly and AAWW vs SPY monthly charts. Currently long less than a typical 1/3 position. I would like to add if AAWW pulls back at this trend line intersection. You'll understand when I attach the monthly charts.
