Speaking of internal rotations, as we have been lately, here is another that looks like it has based over the last two months and is ticking a base breakout. This morning it is easing just a bit to test that would-be breakout.
The sector I am talking about is Medical Devices. As you may recall, I shied away from this area due to the logical prospects of GLP-1 drugs making people thinner and thus, maybe reducing surgery and medical procedures by some fractional amount.
The sector sure has adjusted, but IHI would have to bottom somewhere. This could be that somewhere, if the tentative breakout holds. I have removed volume from the chart because it was visually impairing the view of the shaded pattern. But it has been positive and constructive, showing some conviction on last week’s rise.
RSI and MACD are marching north in orderly fashion. A pullback back into the shaded box is doable, even likely, for a test of the 50 day average. That would not break the bottoming potential.
Just an FYI on a sector if you’d like to do some research on individual components or perhaps consider the sector as a whole.
NFTRH+ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
