There’s a Trading Opportunity in AI Shaping Up

The megatrend in the markets right now is all about AI. [Jeff Clark's Market Minute]( There’s a Trading Opportunity in AI Shaping Up By Imre Gams, analyst, Market Minute There’s no question that the megatrend in the markets right now is all about AI… Right now it seems that AI is everywhere. Product announcements, earnings calls, conceptual designs… the market just expects them to make use of AI one way or another. The AI mania has forced the SEC to focus on what it’s calling “AI washing.” That’s when a company inflates the role that AI plays in its business operations. But make no mistake… The AI megatrend is the most exciting narrative to grip the market in a very long time. But investing in AI is not as easy as some make it out to be. AI is a technologically complex theme. Picking the sure winners while avoiding the losers can be tricky. A Basket of Stocks This is where an ETF can be very helpful. An ETF holds a basket of different stocks relating to the ETF’s mandate. While there are several AI-based ETFs out there, one I have my eye on is ROBO. ROBO is an ETF that tracks the Global Robotics and Automation Index. ROBO will benefit greatly as the adoption of AI makes its way through industries like manufacturing and healthcare. But simply buying and holding ROBO for the long-term isn’t what I’m interested in. That’s because ROBO’s returns have historically been a mixed bag. Over the last five years, ROBO’s quarter end returns are 12.14%. But over a three-year period, the returns are [actually -1.93%.]( This means that we should look to take short- and intermediate-term trades in ROBO instead of just hanging on for the long-term. And right now, ROBO’s price chart is showing signs that it’s getting ready for a quick and explosive burst higher. Since December 27, ROBO has been trading in a sideways range. This range has now clearly developed into a powerful chart pattern. 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. The Triangle This pattern is a triangle. You use two trendlines to outline the contours of the pattern. These trendlines slope towards each other, eventually reaching a point. As we get closer to where the two lines will meet, we should see a strong breakout. Check out the pattern on the chart below: [(Click here to expand image)]( As you can see, ROBO is currently brushing up against the upper blue trendline. At the same time, prices are very close to the apex of the triangle – where the two trendlines would meet. This means the breakout should be happening any day. When it does, my expectation is that prices will run up fairly quickly to just around $60. Just remember – it’s very important to be patient. The triangle pattern isn’t confirmed until prices break out of the upper trendline. But if we do get the breakout, we should be able to capitalize on a nice opportunity. Happy trading, [Signature] Imre Gams [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. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](