AdvisorShares New Tech and Media ETF (FNG) is a relatively new ETF with a trading history that only goes back to July. Its top five holdings are (AMZN) , (BABA) , (NFLX) , (SINA) , and (ROKU) . It dropped sharply this month and has rebounded quickly - not for the faint of heart. In this daily bar chart of FNG, below, we can see that prices have moved swiftly on the upside and the downside. We have crossed above and below the 50-day moving a number of times in FNG's short history. The volume of trading is a little hard to follow but the daily
On-Balance-Volume (OBV) line shows that trading has followed the price action on the upside and the downside. Buyers have been more aggressive on rallies and sellers more aggressive on declines. The trend-following Moving Average Convergence Divergence (MACD) oscillator has also crossed above and below the zero line with buy and sells. Currently the MACD oscillator is poised to generate a cover shorts buy signal.
In this Point and Figure chart of FNG, below, I have manipulated the reversal size and box size to show some activity. A trade up at $23.50 will be bullish and a decline below $20 will be bearish.
Bottom line: If your cardiologist says it is okay to trade FNG I would approach it from the long side on strength above $23.50. A rally could carry to the upper $20's but the big question is what to risk. I would risk $1.50 from your entry price. That may not be a good chart point but it is better than no stop at all.