Follow Inflation: KIE

4月11日

Motor Vehicle insurance prices are up 2.6% month-over-month and 22% year-over-year according to the latest Consumer Price Index report published by the Bureau of Labor Statistics. This should benefit insurance sector equities, so let's take a look at the KIE Insurance ETF.

First Chart (Trend Line; 1 Year):https://www.tradingview.com/x/WmvHLlUL/

Taking a 1 year view we can see that (KIE) has been following this trend line perfectly since October 2023 with no breaches below.

Second Chart (50DMA; 1 Year)
https://www.tradingview.com/x/doBgTcsQ/

Same timeframe but remove the trend line and add a 50D moving average and what do you see? Perhaps we have a bounce here at the 50D moving average, with some volume above average to support (see bottom of chart for volume bars).

Third Chart (5 Year)
https://www.tradingview.com/x/8dOlnMsD/

Zoom out to the 5 year chart and we notice that (KIE) broke out of its sideways price action in November 2023. If using previous price action as a measurement for future price action, the range would suggest we could see a total of 25% gain from breakout area. If this measurement tool proves correct in this analysis it would suggest we have another 12% of upside left in the (KIE).

Price Targets & Gameplan:

Long @ $50

Stop Loss: $48.50

Profit Targets: $52, $55, $56



Thank you for reading and follow for more.

Sources:

U.S. Bureau of Labor Statistics. (2024, April 10). Consumer Price Index Summary [Press release]. Retrieved April 11, 2024, from bls.gov/news.release/cpi.nr0.htm

4月11日

交易结束：到达止损

Stopped out. Will revisit.

I believe it is a takeout for tomorrow, but close position.