Between the recent Facebook scandal to Spotify going public a few weeks ago, it seems the tech industry is taking the spotlight from other sectors of the market.
But these companies deserve some attention too!
Why should you care about these “forgotten” industries though?
Beneath the rug that these companies have been swept under, there is money to be made and very few people seem to be interested in taking it.
So why not sweep up the cash yourself?
Here’s how…
Let’s take a look at the role that technology is currently playing in the market.
Despite its upward trend over the past few years, it’s not the only industry that seems to be worth investing in.
Retail is proving to be a good candidate as well.
But for what reason?
Resistance and support.
People tend to overcomplicate things, especially when it comes to stocks.
Just picture resistance and support as imaginary boundaries that stock prices fluctuate between.
Although they’re not always accurate, these lines are useful because they give an educated guess as to where the market is heading.
If you lift the rug, you’ll notice that there was a line that suppressed the retail sector (XRT) throughout the latter half of 2017.
However, the tables have turned and this resistance now acts as support for the sector!
Following this breakout, prices have refused to dip below $42 and have continued to bounce up since, suggesting a profitable future for the sector.
Not only is the success of the retail market traceable though resistance and support, you can find patterns using channels as well.
Similar to resistance and support, channels are formed by these lines and act as a range for the stock to bounce within.
The main difference is that these channels follow an upward or downward slope.
For example: the stock value for Abercrombie & Fitch (ANF) grew more than 225% in less than a year.
225%!
Although this growth was a fast turnaround, it didn’t happen overnight.
Share prices for the company steadily increased from mid 2017 to now, creating an upward slope on the chart.
Even so, the majority of participants in the financial market remain focused on other industries.
But there’s nothing wrong with spreading your investments into other trades.
In fact, it’s encouraged!
A diverse portfolio is recommended because it reduces your overall investment risk.
Don’t put all your eggs in one basket.
If you’re only invested in one particular industry, why not apply some variation to your portfolio and branch out into different industries, like retail.
Look for a transition from resistance to support or an upward channel then sweep your profits out from under the rug and into your bank account.
