The “Power of the Pattern” shared on January 17th that a multi-year breakout was taking place in the crushed homebuilders sector, reflected in the chart below. (See 1/17 post here)
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Below was the quiz from a couple of 1/29. The quiz reflected a breakout of resistance and then a retest of the line as support…Have any guess what this product is? (see quiz post here) It was a follow up to the chart above!
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The quiz above was produced at the moment that XHB was testing old resistance as support. What do you want to see on any breakout? A retest of the old resistance line as support. Below is a current snapshot of XHB-
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XHB retested old resistance as support and is now pushing higher. This TA reflects continued positive price action for this sector.
The Real Estate sector had a good deal to do with the softness in the economy from 2007 to 2009. Could further price appreciation in this sector be good news for the economy? Stay tuned!
