Swing Trading: Short-Term Breakout Points for Sector ETFs

Where are the breakouts likely to happen–either up or down–and where are the closest price targets? The breakout points (swing levels) aim to provide direction-neutral guidance for either scenario. 

The levels are also ultra short-term, meaning that support and resistance targets are based on the nearest swing highs and lows. Typically, if a market is trending–in this case, trending in the short-term–price often hits the nearest target upon breaking out toward the upside or downside. 

But like all patterns, there is a failure rate, particularly during moments of market indecision, signaling consolidation or ranging activity. The levels provided don’t propose that a breakout will follow through toward hitting its target. Again, they are reference points for you to use should it help you in your own swing trading analysis.

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