The transportation sector is an integral part of the economy. It accounts for shipping food, goods, and cargo around the world, as well as people to their favorite vacation destinations (to name a couple).
That sector seems to be stuck in the mud, with the Transportation ETF (IYT) trading sideways in a wide range for much of the past year.
Lately, $IYT has seen its price narrowing. This action often leads to volatility which may spur a breakout or breakdown.
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$IYT Transportation Sector ETF “weekly” Chart
Not much to add here… a picture often tells the story. If IYT breaks out to the upside, then I’d expect a move to around $265. If it breaks down, then we watch the recent lows around $212-$213. That’s an important level. If that gives way, then we could see a retest of last fall’s low.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
