Have You Checked out Health Care Lately?
Health Care stocks have moved sideways for more than a year, but now they could be showing signs of life.
The first pattern on this daily chart of the Health Care Select Sector Index (SIXV) is the 1264 level. It was near the highs of May and early-June 2021. Prices bounced there several times between October 2021 and May 2022 before knifing below in June (along with the rest of the market). The index held this level again in mid-July after rebounding. That suggests long-term support is in place.
Next came a series of higher lows as SIXV battled the May high. The result was an ascending triangle that that’s now being challenged.
The recent consolidation caused Bollinger Band Width to tighten. Will price expansion follow the volatility squeeze?
Today’s chart also features two moving-average studies. The green line is the 200-day simple moving average (SMA), which SIXV is attempting to break this week. The lower green and red line is our 2 MA Ratio custom script, showing the relationship between the 8-day exponential moving average (EMA) and the 21-day EMA. These have remained in a potentially bullish configuration (fast above the slow) since late June.
Finally, some internals: TradeStation data showed that 23 members of the S&P 500 hit new 52-week highs yesterday (the most since April 21). Health Care was the most represented of that set, with six index members hitting new highs.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The first pattern on this daily chart of the Health Care Select Sector Index (SIXV) is the 1264 level. It was near the highs of May and early-June 2021. Prices bounced there several times between October 2021 and May 2022 before knifing below in June (along with the rest of the market). The index held this level again in mid-July after rebounding. That suggests long-term support is in place.
Next came a series of higher lows as SIXV battled the May high. The result was an ascending triangle that that’s now being challenged.
The recent consolidation caused Bollinger Band Width to tighten. Will price expansion follow the volatility squeeze?
Today’s chart also features two moving-average studies. The green line is the 200-day simple moving average (SMA), which SIXV is attempting to break this week. The lower green and red line is our 2 MA Ratio custom script, showing the relationship between the 8-day exponential moving average (EMA) and the 21-day EMA. These have remained in a potentially bullish configuration (fast above the slow) since late June.
Finally, some internals: TradeStation data showed that 23 members of the S&P 500 hit new 52-week highs yesterday (the most since April 21). Health Care was the most represented of that set, with six index members hitting new highs.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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