We’ve all navigated twists and turns, picking up our fair share of gray hair. Two years later, PHO is finally moving higher.
These updated levels place the Water Resources ETF roughly 4% above our buy signal. I like raising the entry point to 65 and the target to 90.
According to Edwards and Magee’s 3% rule (price closing 3% above a defined risk level), PHO has posted a valid breakout.
All aboard!
Interestingly, PHO’s holdings include a diverse set of names.
The top three components: Ferguson PLC $FERG (Industrials), Ecolab Inc. $ECL (Materials), and Danaher Corporation $DHR (Health Care), all have their hands in water – from supplying plumbing equipment to testing water quality and protecting natural resource supplies.
It may resemble an industrial index more than a commodity ETF. But that’s OK. PHO is printing record highs in a turbulent environment, with many investors questioning which way is up.
Hop on these new all-time highs, and rest assured: If this water ETF continues to rise, so will the overall stock market.
