Technical Analyst, Saxo Bank Group
Summary:
Medium-term analysis of some of the main Industries and Sectors in USA. Charts are all weekly time period and ETF’s are being used.
This Industry analysis is planned to be updated bi-weekly and/or when there are some interesting developments. This analysis is planned to include just short comments and explanations with direction and key support and resistance levels.
Industrial
Medium-term Industrial is forming a rising wedge like pattern which is normally a reversal pattern. RSI divergence indicates a reversal. A close below lower rising trendline will confirm a reversal.
However, Industrial is still in an uptrend and can move higher before breaking out bearish.
If RSI closes above its falling trendline it will strongly suggest Industrial will move towards previous peak at 107.88.
Energy
Energy bounced off support at around 82.65 and could be set to resume uptrend. If Energy moves back above 21 weekly Moving Average and RSI closes above 60 threshold there is likely to be further upside for Industrials.
A close below 82.65 and Energy is likely to test the lower rising trendline. With a break below the trendline a move down to around 66.68 is in the cards.
55 weekly Moving Average acts a good guide for the medium-term trend. As long as Energy stays above the uptrend seems to be intact.
Oil & Gas
Oil & Gas is back above the rising trendline and the 55 Moving Average after a bounce from the support around 125.40.
If RSI closes above its falling trendline it will be a good indication that the sector will move higher. A close above 146.76 will confirm uptrend has resumed.
However, Oil & Gas could be forming a symmetrical triangle like pattern i.e. trading sideways in a more and more narrow range next few weeks.
Another break below the lower rising trendline followed by a close below 125.40 will confirm downtrend.
Financial
Financials is technically in an uptrend but is struggling for momentum. RSI is still below 60 and needs to close above for Financials to really take off. If Financials drops back below 55 weekly Moving Average the sector could resume downtrend . A down trend will be confirmed if closing below 33.19.
Transportation
Transportation is trading in a rising channel pattern. Uptrend intact but could be challenged if breaking below lower rising trendline.
If Transportation breaks below the lower trendline the support at 223.30 will be key. 200 weekly Moving Average will provide support .
Retail
Was rejected at 75.80 after triangle break out. The uptrend is seriously challenged with retail currently below the 55 weekly Moving Average. If Retail closes below the 200
If Retail is likely to test the 55 weekly Moving Average and the falling trendline in the triangle it is likely to turn bearish.
RSI is still showing positive sentiment, however, indicating what we are seeing could just be a correction. But for now it is wait and see.
Health Care
Below 55 weekly Moving Average and dipped below 0.618 retracement and strong support at 127.80 only to close above. The close above the strong support is an indicating that Health Care could reverse the downtrend. RSI bounced off the 40 threshold i.e., still showing positive sentiment.
To push RSI into negative sentiment and extend the down trend a close below 127.80 is needed.
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Commodity Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)