DAY HAGAN RESEARCH UPDATE
HEALTH CARE SECTOR SHOWING SIGNS OF TECHNICAL IMPROVEMENT
Improving breadth readings in the broad Health Care sector, defined in this case by advance-decline and high-low readings, are a reflection of technical improvement/strength.
Art Huprich, CMT
February 7, 2017
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The Health Care sector has been under tremendous and long-standing scrutiny. The economic, fundamental and political reasons are well known and consequently will not be addressed here.
Interestingly, however, in the midst of this scrutiny, improving breadth readings in the broad Health Care sector as shown below, defined in this case by advance-decline and high-low readings, are a reflection of technical improvement/strength.
Additionally, the chart configuration of the Health Care SPDR (XLV) has the look of an ascending triangle pattern, which is normally a bullish continuation pattern. The pattern is evident by the red flat upper resistance line and the green rising support line. XLV will complete the pattern and record a bullish break out (meaning higher prices), on a close at $72 or above.
Please know that Day Hagan Asset Management appreciates your support and hard work!
Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management
— Written 02.07.2017. Chart sources: Stockcharts.com.
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