Industrial Stocks Rally Sharply

09/06/2010 12:01 am EST

Focus: STOCKS

Thomas Aspray

, Professional Trader & Analyst

chart
Click to Enlarge

I feel the Industrial sector is one of the key groups for a healthy stock market and economic recovery. On August 25, the Industrial Select Spyder ETF (XLI) just slightly violated the July lows, but it rallied sharply last week. Friday’s close was above the converging 50- and 200-day MAs. Next resistance is in the $31 area and the major 61.8% retracement level. Using the same methods as discussed in today’s Trading Idea of the Day, if the rally from the lows at point c is equal to the rally from a to b, the Fib targets are just above $32.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.

  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on STOCKS

Keyword Image
Retail Sector is a Short
11 hours ago

The December retail sales report was a disaster, notes Landon Whaley, who recommends shorting the SP...

Keyword Image
2 Ways to Bet on BDCs
12 hours ago

Business development companies (BDCs) lend money to private companies in the form of fixed and varia...