Let's check out the charts of the iShares Expanded Tech-Software Sector exchange-traded fund (IGV) . The iShares Expanded Tech-Software Sector ETF seeks to track the investment results of an index composed of North American equities in the software industry and select equities from interactive home entertainment and interactive media and services industries.
In this daily bar chart of IGV, below, I can see that prices have been bottoming since May. Prices made a "complex left shoulder" in May and June. A "head" can be seen in October/November and the "right shoulder" may be in March. A neckline could be drawn along the highs of August and February.
I am looking for a surge of trading volume if/when prices breakout over the neckline. Prices trade above the rising 50-day moving average line and above the bottoming 200-day moving average line. The On-Balance-Volume (OBV) line shows an uneven rise from October. The Moving Average Convergence Divergence (MACD) oscillator is edging upwards from above the zero line.
In this weekly Japanese candlestick chart of IGV, below, I see that prices have firmed above the bottoming 40-week moving average line. The OBV line is showing improvement and the MACD oscillator has turned bullish in March.
In this daily Point and Figure chart of IGV, below, I can see a potential downside price target in the $241 area.
In this weekly Point and Figure chart of IGV, below, I can see an upside price target in the $407 area.
Bottom line strategy: I am recommending the long side of IGV on strength above $300 on really strong volume. Risk to $280. $350 is my price target for now.
