Not every moment is a worthwhile time to trade. Depending on the strategy employed, the current price falls on a spectrum between between great entry point and horrible entry point. When the price is trading near a great entry point, that is obviously best, while a good entry is also acceptable if the potential reward still outweighs the risk. This is why watching price action is important, as it highlights those potentially good or great entry points.
Let’s start with the VanEck Vectors Russia ETF (RSX VanEck Vct Rus Shs RSX 21.34 +1.91%). After pulling back for most of 2017 from a prior uptrend, late August has seen the price surge, ending the pullback phase. From a longer-term perspective, the price could be commencing another major wave to the upside, which could unfold over the next several months to a year. The price was recently moving in a channel, which it has broken out of, providing an upside target of $23.50 or above. For an entry, catching a small pullback into the $20 region would be good, while an entry up near $21 (further away from the breakout) is not as good. This is because a stop-loss order can be placed below $19.50, so the difference in entry points dramatically affects the risk/reward of the trade. (See also: An Active Trader’s View on BRIC.)
These strong ETFs are near trade levels, but are the trades worth taking? …read more
Read more here: Price Action in These ETFs Deserves Attention
Category: RSX, XLK, SMH