Waiting for Healthcare’s Next Big Breakout

Prices finally broke out of a pattern that has been taking shape since 2022. [Jeff Clark's Market Minute]( Waiting for Healthcare’s Next Big Breakout By Imre Gams, Analyst, Market Minute Recently, we’ve been discussing the [power of trend continuation setups](. They keep you on the right side of the market, making sure you don’t trade against the larger trend. They also offer great reward-to-risk opportunities. It’s not uncommon for trend continuation setups to return 100% or more on a trade. When you have a strategy that consistently delivers great returns and is right more often than wrong, you have a recipe for building long-term wealth. The last trend continuation pattern we looked at was in XHB, the SPDR S&P Homebuilders ETF. And while we’re waiting to see whether the pattern will break out higher or not, I have another setup to share with you. Recommended Link [Legendary Trader Who Called Every Crash Since 1987 Says: “Do THIS Right Now…”]( [image]( Jeff Clark has accurately predicted every major crash since 1987… While helping over 170,000 regular people capture returns of 106%... 267%... and 475% in ANY market condition… But… Now… Jeff is going on-air to demonstrate how you can: - [Predict market crashes BEFORE they happen…]( - How you can profit if the market goes UP or DOWN… - How you can double your money in as little as a few days – with as little as $21… And more importantly… [Jeff Clark is making his NEXT big market prediction for 2024.]( A Government event set to shake up the entire financial system starting on March 20th. To prepare, Jeff is going to help you profit regardless of what happens in the market… [CLICK HERE for Details.]( -- Look for the Bull Flag This time, we’re looking at a healthcare ETF, XLV. [I first put XLV on your radar on December 20](. At the time, the ETF was getting ready to break out of a large triangle pattern. The triangle had been taking shape since April 2022. Prices finally broke out of the pattern on January 2. And now, we’re seeing a smaller trend continuation pattern that we’re going to examine closely. This kind of setup is one of my favorites. When a large pattern breaks out, like the triangle in XLV, it can be difficult to figure out where to place a stop loss. Often, a large pattern also comes with a larger stop loss. That’s why waiting for a secondary pattern to take shape is a great strategy. A little bit of patience can pay off in a big way. All you have to do is wait for the secondary pattern, which will always be smaller than the first, to break out. In the case of XLV, this secondary pattern is a bull flag. Let’s check it out on the chart below. [(Click here to expand image)]( A bull flag occurs after a strong run-up in prices, and the market has to take a breather. This part is the same for all trend continuation patterns. In the case of XLV, prices traded from $122.60 to $141.55 over 73 days without any major pullbacks. That sets the stage very nicely for our bull flag. A bull flag is a controlled pullback that is contained by parallel lines. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. I’ve drawn the outlines of the flag using the blue trendlines. What we’re waiting for next is a breakout above the upper trendline of the pattern. This will signify that the pullback is over, and the next strong trending run is about to begin. Finally, we can use the base of the pattern as a stop-loss level. Currently, that level is $137. And because my target for this pattern is around $150, this would give us a very favorable risk-to-reward ratio on the trade. Happy trading, [Signature] Imre Gams Analyst, Market Minute IN CASE YOU MISSED IT… [“You need at least $100 of this asset – and it’s NOT gold” – Dr. Nomi Prins]( $100 is all you need… Former Goldman Sachs managing director Dr. Nomi Prins has identified an investment she’s calling ‘the world’s hardest asset’ – and she’s recommending it to friends, family, and followers. She’s talked about it on podcasts… live TV… and in her newest, bestselling book, Permanent Distortion. Dr. Prins says: “This asset has nothing to do with gold or silver, but it has many of the same features to protect your wealth – and preserve your privacy.” As the turbulence in our world grows worse and worse… [Click here now to see what Nomi is recommending before it’s too late.]( [image]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. 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