5 Stock Charts That Say Health Care Sector Is Bottoming

Medical Devices ETF (IHI) –  The down trend from October has been exceeded. This is a good omen for stocks in this group.

The Medical Device makers which have trended down in the last couple months appear to be bottoming.

Health Care Index – Counter-trend BUYS are now apparent in the healthcare sector, similar to what occurred back in March. That move marked a meaningful bottom and the start of a 4-5 month trading bounce.

A rally back to test this trend looks likely and healthcare should be overweighted given its recent move to multi-day highs (from a risk/reward basis).

Note that you can catch more trading ideas and insights from me over at my site, Newton Advisor.  Thanks for reading.

Twitter:  @MarkNewtonCMT

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