The major indexes have started the week off on a positive note Monday morning. Here’s a list of charts that Brean Capital technical analyst Frank Longman is watching this week.
For the Daily SP500 E-mini, Longman believes “there’s an inclination to test the primary uptrend at 2007 before a new high.” He is predicting a bounce off of that trend line on the first test.
Media stocks were hit hard last week, and Longman is looking for the group to test long-term support levels. “The damage thus far has us thinking that a correction of the uptrend that began at 2011’s lows has begun and we’ve labeled the 38% retracement versus that low ‘major support,’” he explains.
Despite recent weakness, Longman points out that the long-term bullish trend in biotech remains intact. He believes that a retracement of another 11 percent is in store for the iShares Nasdaq Biotechnology ETF IBB 1.14% before the sector resumes its uptrend.
Despite recent pressure, it’s not all bad news for the tech sector from a technical perspective. Longman still sees technical strength in the charts of Arista Networks Inc ANET 4.79%, F5 Networks Inc FFIV 0.73%, Mobileye NV MBLY 0.86% and Zebra Technologies Corp ZBRA 23.85%.
Longman recommends…
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