Weekly Pending Setups Report | New Setups TLT, COPX, EWZ

We have three new setups this week, while UBER, RSPD and XLB turned active.

New Setups

• TLT
• COPX
• EWZ

 

Asset Classes

Equities

• UBER Technologies (UBER): Pending→Active (Turned active October 10)

 

Equity ETFs

• Invesco S&P 500 Equal Weight Consumer Discretionary (RSPD): Pending→Active (Turned active October 10)
• Materials Select SPDR Fund (XLB): Pending→Active (Turned active October 10)

Equity ETFs

New Setup: Long: iShares 20+ Year Treasury Bond ETF (TLT)

-Price is trending within a tight downwards channel. It has recently hit a deeply oversold reading

-Short-term bullish divergence has formed with the RSI indicating that the downwards momentum is fading

-A break above the price channel could trigger the trade and a potential meaningful reversal of TLT back to key levels of resistance above

-Macro Catalyst: Weakening of U.S. economic data or an acceleration in geopolitical concerns would see investors seek out safe haven assets like Treasuries.

-A stop loss placed under $85 would ensure that the trade is stopped out and limit losses in the event that a breakout above the short-term price channel fails to hold

New Setup: Long: Global X Copper Miners ETF (COPX)

-Price is approaching a very significant line of trend support. While there is no clear divergence, price is making a clear lower low while the RSI is showing that downside momentum is fading. This setup as price approaches significant support seems compelling

-A break above the down trendline dating back to July of this year would trigger the trade

-A break below the primary trendline would negate any bullish technical setup

-Macro Catalyst: credible fiscal stimulus in China and a weakening dollar reflecting easing global economic concerns would see a recovery in copper prices, with miners as beneficiaries.

-A potential stop loss is placed below the trendline support in the event the trade is triggered would be ideal

New Setup: Long: iShares MSCI Brazil ETF (EWZ)

-EWZ has been consolidating since it broke its 2023 uptrend. It recently printed a bullish divergence, potentially suggesting that the consolidation is losing steam and the uptrend is poised to pick back up

-A break above the downwards trendline capturing the two recent peaks would confirm that the price consolidation is done and set the ETF up for more upside, triggering the trade

-Macro Catalyst: a weakening of the dollar reflecting easing concerns around the global economy would propel Brazilian stocks higher given their exposure to China and the commodity cycle.

-A stop loss could be placed around the $30.75 mark. Price revisiting this level after a break above the trendline would likely negate any bullish development.