GoNoGo senses moment of truth for technology
What’s next for the technology sector?
Technology has been the leader this year, outperforming the S&P 500 throughout the volatile market reactions to Covid-19.
This week saw the sector fail at prior highs and yesterday’s price bar showed a weakening in the GoNoGo Trend.
Look to the GoNoGo Oscillator at this critical juncture. When in a strong trend, remember, the Oscillator should find support/resistance at the zero line. You can see this throughout the time period.
This is a non subjective level because it means that all momentum is neutral. In a strong uptrend for example, enthusiasm should pick up, and the GoNoGo Oscillator should rally off the zero line helping price make a new leg up.
If the GoNoGo Oscillator cannot stay positive and breaks below zero, then we expect price to struggle and the “Go” trend to really be threatened.
Technology has been the leader this year, outperforming the S&P 500 throughout the volatile market reactions to Covid-19.
This week saw the sector fail at prior highs and yesterday’s price bar showed a weakening in the GoNoGo Trend.
Look to the GoNoGo Oscillator at this critical juncture. When in a strong trend, remember, the Oscillator should find support/resistance at the zero line. You can see this throughout the time period.
This is a non subjective level because it means that all momentum is neutral. In a strong uptrend for example, enthusiasm should pick up, and the GoNoGo Oscillator should rally off the zero line helping price make a new leg up.
If the GoNoGo Oscillator cannot stay positive and breaks below zero, then we expect price to struggle and the “Go” trend to really be threatened.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.