From the desk of Steven Strazza @Sstrazza
With price coiling in a bullish flag-like continuation pattern, yet showing waning momentum – responses we’re mixed with many wanting to wait for more information.
The chart was a long-term look at the Global Auto ETF $CARZ. And as far as the impending breakout is concerned, it looks like we got our answer this week…
Here’s the same weekly bar chart. Looks a bit different now, doesn’t it?
CARZ kicked off the week with a breakaway gap as it sliced through our primary objective and recent highs around 60.
You can see this bullish gap and go on both the daily and weekly charts. Check it out:
Momentum also hit oversold on the daily RSI, while the weekly isn’t far from achieving the same (not shown in chart).
From a macro perspective, this is another consolidation resolving higher from an important level of supply. It’s a point for the bulls in an environment that remains mostly mixed.
But from a micro view, it’s much simpler. Auto stocks are breaking out!
That means we want to look “under the hood” at the CARZ components and identify bullish setups in some of the strongest names.
Here’s what we found…Lost Password?