Technical Analyst, Saxo Bank Group
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 Sector and Industry analysis is planned to be updated bi-weekly and/or when there are some interesting developments. This analysis is planned to be with just short comments and explanations with direction and key support and resistance levels.
Industrial
Range bound. Bounced from lower range support at 96.30 and 55 weekly Moving Average. If closing below Industrial is likely drop to around 90 i.e., 200 MA. Close above 104.20 likely new highs
Energy
Energy jumped back above resistance at 82.65. Weekly RSI didn’t close below 40 gave upside energy for a strong bounce. If RSI closes back above its falling trendline and above 60 expect Energy to test previous highs around 93-95.
If closing the gap and back below 82.65 bear trend is likely to unfold.
Oil & Gas
Bearish break out of triangle.
After a test of the rising trendline Oil & Gas failed to close above but instead got rejected and seems to resume downtrend.
RSI rejected at its falling trendline suggest Oil & Gas could drop back to March lows at around 114.58 but a new low should not be ruled as indicated by the arrows.
Metals and Mining Industry
Has broken below lower rising trendline in the Rising Wedge like pattern only to bounce from key support at around 48.48. However, Metals do not seem to be able to close above 53.50 resuming downtrend.
If Metals & Mining closes below 55 weekly Moving Average 48.48 is likely to be tested A close below 48.48 could fuel another sell off down around 40.
A close back above the lower falling trendline is likely to result in Metals and Mining to resume uptrend
Financial
Financials has bounced strong past couple of weeks but the downtrend is intact supported by RSI showing negative sentiment which is an indicating of lower levels. A close above 34.56 will demolish the bearish picture.
Transportation
Transportation broken bearish out of rising channel pattern. Bounced from key support at around 211.48. To resume uptrend a close above 238.75
Technology
Broken above medium-term falling trendline and has established an uptrend. A close above resistance at around 152 will pave the way for 164
RSI above 60 confirming the uptrend.
Materials
Materials should be considered range bound. RSI still positive indicating the break below support 76.66 is a false break. Range: 75.50 for 65.00 – 84.60 for 90.61
Retail
Bearish trend. RSI is still showing positive sentiment, however, indicating what we are seeing could just be a correction. But if Retail cannot close back above 200 MA the outlook is bearish with a potential move to 55 support. 55 weekly Moving Average putting a lid on the upside potential.
Health Care
Strong bounce but RSI still below 40 i.e., negative sentiment, needs to close above 60 to reverse to bullish.
Health Care rejected at the 0.618 retracement and seems a bit indecisive at the moment. If sliding back bellow 130.50 down trend is likely to resume
A Sector close above 134 will reverse the downtrend. A close below 129.57 downtrend is likely to resume
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