Telecom Stocks Look Overdue For A Rally

Chris Kimble

2017 hasn’t been kind to the Telecommunications Sector and several telecom stocks.

The Telecom Sector ETF (NYSEARCA:IYZ) is down over 15% this year, with the past two weeks providing a thud to the decline.

The carnage in the sector can be seen on the weekly chart for IYZ below.

But there could be a silver lining for opportunistic (and disciplined) traders here… Here’s why:

  • The Telecom ETF is at a cluster of price support (point 1).  This includes a variety of trend lines, including the current underside of the broader bullish channel formed since 2009.
  • Momentum is at its most oversold in the past few years.

Keep this one on your radar.


Telecom Sector ETF Weekly Chart

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Twitter:  @KimbleCharting

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.