Keltner Channels Reveal "Buy Zone" on ITB

iShares stock pulling back from its overbought position... [Chart Of The Day] November 8, 2019 And the Nobel Prize in Economics Goes to… James F******* Altucher?!? [Coin]( Economists have been studying the stock market for 227 years. But one thing they haven’t explained: [What swings the markets wildly up and down?]( With the help of advanced AI and a Harvard-educated mathematician, [one computer nerd may have just found the answer](… and a consistent way to profit from it. [Click here now for more on this groundbreaking discovery.]( Keltner Channels Reveal "Buy Zone" on ITB [Chuck Hughes]Dear Chart Of The Day Reader, Yesterday, we looked at a chart of Walmart Inc., which has been showing a bullish price pattern. Today’s Chart of the Day is a Keltner Channel chart for iShares U.S. Home Construction ETF (NYSE: ITB). ITB tracks the investment results of the Dow Jones U.S. Select Home Construction Index, which is  composed of U.S. equities in the home construction sector. And if we look at the stock contained within the Keltner Channels, we notice something very important. Now, the Keltner Channels serve as an overbought/oversold indicator. When the daily stock price is trading above the Upper Channel, it signals that the stock is overbought. When a stock becomes overbought, it normally declines in price as the inevitable profit taking occurs. Stocks in a price uptrend do not advance in a straight line. There are always price retracements along the way. That’s what we’re watching for. Below is a daily price chart for ITB stock along with the three Keltner Channels (Upper, Middle, and Lower). [Chart] The ITB daily price chart shows that ITB is in a strong price uptrend and recently became overbought six times as the stock traded above the Upper Keltner Channel (circled in blue). As you can see, after trading above the Upper Channel in all six scenarios, ITB experienced a pullback. Even though ITB experienced the pullbacks, the stock always continued to rally afterwards. If you want to participate in this rally, how should you decide when to get in? We use the Keltner Channels to help us select a lower-risk entry point. A Keltner Channel “Buy Zone” occurs when a stock is trading below the Upper Keltner Channel. Once the daily price is trading below the Upper Channel, it signals a buying opportunity. If you had purchased ITB shares when ITB entered the “Buy Zone” around March 29th, you’d be up 24.5% on the stock. But if you had bought the January 17, 2020 $30-strike call option, you would be up 106.7% by now! That’s after only one trade! Knowing that ITB shares are continuing to rise, experience pullbacks, and rally again, we’ll be paying attention to future pullbacks in order to get in at a favorable entry point. Additionally, we’d like to talk about how a previous Chart of the Day stock has done... On [November 6](, we highlighted The Western Union Co, (NYSE: WU), noting that it was on a bull run. If you happened to have purchased WU shares on that day, you’d already be up 5.2%. But... if you had purchased an option contract, one that follows the PowerTrend 3-Step system, you would be up 68.6% in just two days! That’s the power of options. Best Regards, [Chuck Hughes] Chuck Hughes Editor, Chart Of The Day P.S. If you missed the event on October 30… I gave away my entire trading system in a webinar that aired last week… And it’s already deadlined. In case you missed it, don’t worry. My proprietary training course is still available. This is where I teach you how to trade like me — seriously. You can use the exact system I used to win 10 Trading Championships to bank huge gains. And I’ll be there to guide you through each step. [Click here]( for more information. —The ONLY Marijuana Stock You’ll Ever Need… Shocking news out of the marijuana industry… and Wall Street Insiders are going crazy. On [December 16th](… a massive 1.4 million-square-foot super-greenhouse is coming online… And could send a little-known 60-cent marijuana stock soaring! Business Insider said… “Bottom line: What Netflix is to movies and TV series, [this company] could be to pot. But this could even be better…” But you’ve got to hurry… everything goes live just days from now. [>>Click here for the details<<]( [Chuck Hughes' Chart Of The Day] If you are having trouble receiving your Chart Of The Day subscription, you can ensure its arrival in your mailbox by [whitelisting Chart Of The Day](. © 2019 by Chart Of The Day. All rights reserved. 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