Trading Ideas

Short – What “Tech Bubble”?

What “Tech Bubble”? by SchalkLouw on

Global Tech companies made a great comeback since giving brave investors the best Christmas (time of Low) 2018 gift ever. ISHARES TRUST GLOBAL TECH ETF now approaching its all time highs the ETF made in August & October last year (2018). Nice little inverse head and shoulders developed, confirming the reversal in the downtrend. Share price also made a Golden Cross with yesterdays close, confirming that the force is strong with this one. IXN however trading at extreme overbought levels according to its RSI (Caution).

Should that right shoulder not break (above $177) upward, the downside resistant to watch is quite a bit lower. $166.50 will be my first target, with both the 50-day & 200-day moving average at $163, being a strong support level (also my stop-loss). Should we see a break through these levels, $154 could be next target with a break possibly testing the long-term trendline at $142.

Traders that want to go long, shouldn’t do so with a weak heart 😉

Top10 holding currently:

NYSE:V 4.26%
KRX:005930 3.38%
NYSE:MA 3.34%
TWSE:2330 2.30%

Schalk Louw
As Portfolio Manager at PSG Wealth Old Oak and with over 20 years’ experience in the investment industry, Schalk has consistently delivered solid returns to his clients and has certainly become one of South Africa’s most well-known strategists. He started his career in 1994 at the stockbroking company, Huysamer Stals (later ABN Amro). He joined SMK Securities in 1997, (later became BoE Personal Stockbrokers) and was later appointed as director and branch manager. In 2001 he co-founded Contego Asset Management and managed the company as CEO up to March 2014, after which he joined PSG Wealth Old Oak. Schalk has also become a regular household name with investors, with his reports being published in many of the national press. He completed his MBA in 2008.

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