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May 04, 2006
Breadth Oversold for IGN
The McClellan Volume Oscillator for the Networking iShares (IGN) has become oversold and traders should watch for a move into positive territory to trigger a bullish signal. The McClellan Volume Oscillator became oversold in August and October with a move below –100 (green ovals). Bullish signals were subsequently triggered when the McClellan Volume Oscillator moved from oversold to positive territory (blue ovals). The September signal was short-lived, but the October signal preceded a sharp advance. The McClellan Volume Oscillator moved below –100 in April more than once. This is why it is important to wait for bullish confirmation with a move into positive territory. Thus far the oscillator has yet to move into positive territory, but such a move would trigger a bullish signal. Also notice that IGN is trading at support from the April-05 trendline and Jan-Feb consolidation. ETFInvestmentOutlook.com
Posted by Arthur B. Hill at May 4, 2006 10:45 AM