![\"FXH\"](\"https:\/\/www.morpheustrading.com\/~rick\/charts\/2012\/120705FXH.gif\" "\\"\\"")
<\/p>\nOver the past five sessions, First Trust Health Care AlphaDEX ETF ($FXH) has rallied into resistance near its previous swing high of $31.45 (see dashed horizontal line on chart below). Over the past two sessions, FXH has shown signs of pulling back from this key mark. As such, FXH now offers a possible buying opportunity under two scenarios within the next few days. The first would be a pullback buy entry into support of the 20-day exponential moving average (EMA) and the uptrend line (ascending black line). An alternative entry could develop if FXH consolidates just below resistance over the next 5 to 10 days, and then breaks out above the horizontal price resistance around $31.45. Under either circumstance, we would only enter a long position in this ETF if it provides an appropriate technical “setup.” Typically, we will look to enter above the high of a “reversal candle,” much like the one formed on June 18th (annotated below). Given the relative strength exhibited by this ETF (it’s near a 52-week high), we will continue to monitor it closely for a possible buy entry:<\/p>\n
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During the market’s recent move higher, the homebuilder sector has shown significant strength, as it has led the advance by rallying to fresh 52-week highs. By extension, the iShares Dow Jones U.S. Home Construction ETF ($ITB) now offers a potential buying opportunity on a pullback to support of its 10-day and 20-day moving averages. As with FXH, we will only look to enter a position in ITB if it presents a setup that meets our trading criteria. Jumping the gun by buying stocks or ETFs before technical analysis provides us with our predetermined entry price is never recommended:<\/p>\n
![\"ITB\"](\"https:\/\/www.morpheustrading.com\/~rick\/charts\/2012\/120705ITB.gif\" "\\"\\"")
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