Low priority idea for anyone looking for tax loss seasonal plays.
I added this one today after combing through the Medical Device iShares (IHI) holdings for prospective charts. By prospective, I was not seeking over valued, high flying big names on pullbacks (ref. recent BSX trade) but maybe some lesser-knowns lower in the IHI holdings mix. Here’s one I came up with (disclaimer here as always is to please do your own DD as I’ve only done quick research and am mainly using the chart).
Personally, I am only interested in it for the short-term pattern on the daily chart (which is in a downtrend as a tax loss play would be). If it loses the 50 day average (currently at 40.75) I will most likely sell it and if the market goes bad all bets would be off.
As is often the case, I took it as a portfolio position and so did not wait for the best looking buy point, which would be at the 2nd level of short-term support and the EMA 20 (currently 42).
The weekly chart shows a stock that was handily cut in half in 2019 and bounced from support. Resistance is just overhead as it pulls back this week after last week’s sizable rally.
I don’t really have a basis for upside targeting, so let’s call it a seasonal bounce candidate with a time frame into late January if it works out.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.