Software Flexible:

In Monday’s technology note we asked the question if software was ready to be included in the recent technology parade. The group seemed to listen and deliver. The ETF rose 2% and it’s hard to make the case that the fund is bull flagging as that works best near highs, but give it credit for digesting a nearly 50 handle rally since bouncing off the very round 300 number on 3/14. To build on the bullish thesis it is showing a propensity to CLOSE above its 50 day SMA. NOW for the last several sessions is trading between its 50 and 200 day SMAs and today rose 3%. SNPS another top ten holding in the IGV is rounding out the right side of a possible cup base pattern. TEAM rose 6% Monday, ORCL seems to want a date with its 200 day SMA to the upside and SPLK is comfortably back above its 200 day SMA. If CRWD can recapture its 200 day SMA about 5% away look for this name to become a leader in the space. TTD is an interesting software stock and offers good risk/reward here in my opinion.

This article requires a Chartsmarter membership. Please click here to join.