Heikin-Ashi and the Bullish Homebuilders

May 2, 2012

On the price chart, Homebuilders ETF (XHB) made a new high but haDelta says “Caution!”

Although the price action remains very bullish we should pay attention to haDelta and its next move.

Best for the trend would be to retest the recent resistance (a possible hook on haDelta chart).

The price chart suggest to act on a buy-stop above yesterday’s high.  Not a bad idea but better would be to wait for a pullback (as haDelta points to timidly).

XHB has potential…

Note: haDelta beat the bearish dark cloud cover by two (2) bars in March (yellow). haDelta and its SMA(3) cannot be ignored…

Heikin-Ashi and the Homebuilders


%d bloggers like this: