Follow Inflation: KIE
Updated
Motor Vehicle insurance prices are up 2.6% month-over-month and 22% year-over-year according to the latest Consumer Price Index report published by the Bureau of Labor Statistics. This should benefit insurance sector equities, so let's take a look at the KIE Insurance ETF.
First Chart (Trend Line; 1 Year):https://www.tradingview.com/x/WmvHLlUL/
Taking a 1 year view we can see that (KIE) has been following this trend line perfectly since October 2023 with no breaches below.
Second Chart (50DMA; 1 Year)
https://www.tradingview.com/x/doBgTcsQ/
Same timeframe but remove the trend line and add a 50D moving average and what do you see? Perhaps we have a bounce here at the 50D moving average, with some volume above average to support (see bottom of chart for volume bars).
Third Chart (5 Year)
https://www.tradingview.com/x/8dOlnMsD/
Zoom out to the 5 year chart and we notice that (KIE) broke out of its sideways price action in November 2023. If using previous price action as a measurement for future price action, the range would suggest we could see a total of 25% gain from breakout area. If this measurement tool proves correct in this analysis it would suggest we have another 12% of upside left in the (KIE).
Price Targets & Gameplan:
Long @ $50
Stop Loss: $48.50
Profit Targets: $52, $55, $56
Thank you for reading and follow for more.
Sources:
U.S. Bureau of Labor Statistics. (2024, April 10). Consumer Price Index Summary [Press release]. Retrieved April 11, 2024, from bls.gov/news.release/cpi.nr0.htm
First Chart (Trend Line; 1 Year):https://www.tradingview.com/x/WmvHLlUL/
Taking a 1 year view we can see that (KIE) has been following this trend line perfectly since October 2023 with no breaches below.
Second Chart (50DMA; 1 Year)
https://www.tradingview.com/x/doBgTcsQ/
Same timeframe but remove the trend line and add a 50D moving average and what do you see? Perhaps we have a bounce here at the 50D moving average, with some volume above average to support (see bottom of chart for volume bars).
Third Chart (5 Year)
https://www.tradingview.com/x/8dOlnMsD/
Zoom out to the 5 year chart and we notice that (KIE) broke out of its sideways price action in November 2023. If using previous price action as a measurement for future price action, the range would suggest we could see a total of 25% gain from breakout area. If this measurement tool proves correct in this analysis it would suggest we have another 12% of upside left in the (KIE).
Price Targets & Gameplan:
Long @ $50
Stop Loss: $48.50
Profit Targets: $52, $55, $56
Thank you for reading and follow for more.
Sources:
U.S. Bureau of Labor Statistics. (2024, April 10). Consumer Price Index Summary [Press release]. Retrieved April 11, 2024, from bls.gov/news.release/cpi.nr0.htm
Trade closed: stop reached
Stopped out. Will revisit.I believe it is a takeout for tomorrow, but close position.
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