Chart of the Day: Robotics ETF Lands on Strong Support
Robotics and automation have yet to take off and as such the Robo Global Robotics and Automation Index ET ($ROBO) has not been lighting the house on fire. However, we have taken the long-term approach with this ETF, so we will wait for some bigger news and moves from its components.
SpaceX ($SPCX), of course, is one of the biggest market-cap names on the planet but is not yet in the ROBO. At some point it should be added to the ETF and that may bring even more interest. For now the ROBO contains mostly healthcare, industrial and technology companies.
The chart looks decent. ROBO has mostly gone sideways in a rather wide range. Just this week the ETF landed on the 200-day moving average, where in the past ROBO has bounced sharply. We should see this happen again, so this pullback would likely be a great spot to add some more shares.
Though the indicators are mixed and the candles are amber (neutral), we like this recent pullback for a buying opportunity.
Money flow is actually positive here, as big money continues to buy this ETF. The MACD has crossed for a bearish sign while the upward momentum from September has been squandered. The area between $74-79 looks pretty attractive for a low-risk entry point.
We like ROBO in TheStreet Pro Portfolio and rate it a Two, or “stockpile on pullbacks.”
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At the time of publication, TheStreet Pro Portfolio was long ROBO.
