iShares U.S. Aerospce & Defense ETFKey Indicators on Trade Set Up in General
1. Push Set Up
2. Range Set up
3. Break & Retest Set Up
Notes On Session
# iShares U.S. Aerospce & Defense ETF
- Head & Shoulders(Inverted)
- HH & HL's
- Rising Wedge
- Angle 1&2
- Retracement
Active Sessions on Relevant Range & Elemented Probabilities;
London(Upwards) - NYC(Downwards)
Conclusion | Trade Plan Execution & Risk Management on Demand;
Overall Consensus | Buy
ITA trade ideas
DEFENSE WINS CHAMPIONSHIPS (Global Conflict Summary EDITION)Per the council of foreign relations, these are the following current global conflicts. I've included a brief description of each conflict. It's important to understand these if you're planning or already are investing in defense stocks.
Per TA, I've labeled bearish price targets, bullish price targets, relevant trends. It looks overvalued from analysis on ITA, but there is upside. I'd say that short term probably favors bulls (talking maybe weeks if not less), mid term probably favors the bears (multiple months), long term will likely favor bulls, but it will depend on the movement we see over FEB and March.
Global Conflict Summary
Americas
Criminal Violence in Mexico
The criminal violence in Mexico involves various organizations such as Sinaloa, Los Zetas, Tijuana/AFO, Juárez/CFO, Beltrán Leyva, Gulf, La Familia Michoacana, the Knights Templar, and Cartel Jalisco Nuevo Generación (CJNG). The violence is attributed to the increase in crime rates and the limited interventions by the state and municipal police.
Instability in Haiti
The instability in Haiti involves the government, opposition parties, and the international community. The crisis revolves around the dispute over the presidential term and the government’s inability to control skyrocketing prices of commodities.
Instability in Venezuela
Venezuela is facing an unprecedented social and humanitarian collapse due to poor economic policies, political conflict, and the international community’s unsuccessful attempts to bring about positive change. The conflict involves the government under President Nicolás Maduro and opposition groups.
Asia
Instability in Afghanistan
Since the Taliban reclaimed control of Afghanistan in 2021, the country has further plunged into political and economic instability. The conflict involves the Afghan government, the Taliban, and various local and international actors.
Territorial Disputes in the South China Sea
China’s sweeping claims of sovereignty over the sea have antagonized competing countries. The key parties involved in this territorial dispute are China, the Philippines, and the US.
North Korea Crisis
North Korea could resort to nuclear weapons in a crisis as it is making significant progress toward implementing a more robust nuclear strategy. The crisis involves North Korea, South Korea, the United States, Japan, and other international actors.
Instability in Pakistan
Pakistan continues to face multiple sources of internal and external conflict. Extremism and intolerance of diversity and dissent have grown, threatening the country’s prospects for social cohesion and stability. The conflict involves the Pakistani government, opposition groups like the Pakistan Muslim League and the Pakistan Peoples Party, and militant groups like the Tehrik-e-Taliban Pakistan (TTP).
Conflict Between India and Pakistan
Since 1947, India and Pakistan have been involved in a number of wars, conflicts, and military standoffs, with the Kashmir conflict serving as the catalyst for every war between the two states. The conflict primarily involves India and Pakistan, with the disputed region of Kashmir being a major point of contention.
Confrontation Over Taiwan
Tensions are rising over Taiwan as China’s power and assertiveness grows, competition between the U.S. and China spreads, and the Taiwanese people develop a distinct identity increasingly disassociated from the mainland. The key parties involved in this conflict are China, Taiwan, and the US.
Civil War in Myanmar
The civil war in Myanmar escalated significantly in response to the 2021 military coup d’état and the subsequent violent crackdown on anti-coup protests. The conflict involves the National Unity Government, People’s Defence Force, Chinland Defence Force, Chin National Defence Force, Karenni Nationalities Defence Force, and other ethnic armed organizations against the State Administration Council and Tatmadaw.
Europe and Eurasia
War in Ukraine
The war in Ukraine involves Ukraine and Russia. The conflict is over the sovereignty of Crimea and parts of eastern Ukraine, which Russia annexed in 2014.
Nagorno-Karabakh Conflict
The Nagorno-Karabakh conflict involves Armenia and Azerbaijan. The dispute is over the Nagorno-Karabakh region, which is internationally recognized as part of Azerbaijan but is governed by ethnic Armenians.
Middle East and North Africa
Conflict in Syria
The conflict in Syria involves the Syrian government, opposition groups, and various international actors. The civil war began in 2011 as part of the Arab Spring protests and has since escalated into a multi-sided conflict involving numerous factions and foreign powers.
Instability in Iraq
The instability in Iraq involves the Iraqi government, various ethnic and religious groups, and international actors. The conflict stems from sectarian tensions, political instability, and the presence of ISIS.
Israeli-Palestinian Conflict
The Israeli-Palestinian conflict involves Israel, Palestine, and various international actors. The conflict is over the sovereignty of the Palestinian territories and the establishment of a Palestinian state alongside Israel.
Sub-Saharan Africa
Conflict in the Central African Republic
The conflict in the Central African Republic involves the government, various rebel groups, and international actors. The conflict stems from political instability, ethnic tensions, and control over the country’s rich natural resources.
Conflict in Ethiopia
The conflict in Ethiopia involves the Ethiopian government, the Tigray People’s Liberation Front, and various ethnic and regional groups. The conflict stems from political tensions, ethnic disputes, and disagreements over the country’s system of ethnic federalism.
Please note that this is a brief summary and does not cover all aspects of the conflicts. For more detailed information, please conduct further research.
Defense in FocusDo you call yourself a patriot? With allegations that Russia is willing to sabotage a nuclear power plant in Eastern Europe sophisticated investors like me and you need to answer the call. Invest in iShares U.S. Aerospace & Defense (ITA) ETF, supporting the strength of our nation's aerospace and defense industries. Protecting our freedom, safeguarding our future. Join the ranks of patriots today. #InvestInDefense
ITA - Minor Low BreakoutStrong G/G trend in a sector that should continue to benefit from arms sales and production.
21/34 Propulsion support, Darvas levels, Darvas 3.0 and Vscore support.
Volume support is priced lower. This may end up being a multiple price entry or an entry @ lower prices.
Entry - 115.60 minor low breakout
Profit - 117.20
Stop Loss @ 25%
Options are non-existent around 115, so this would be another stock only trade.
Defense stocks rise Fundamentally:
Raise of world instability and wars risks.
War in Ukraine
Future possibility of NATO vs Russia conflict
Technically:
I see a clear impulse after correction. Will wait for wave 2 to add more to this trade. Currently, have position lower.
In M1 good PA reversal signal.
No a financial advice.
ITA (Aero &Defense)Sector where names like Boeing , Lockheed Martin and Raytheon are traded..
If you look at all 3 of those , you'll notice massive moves the last 2 weeks that mirror the moves in this sector
We're are at supply area and it's looking like a reversal from here, RSI and CCI are already turning over.
Here's a link to stocks that will be exposed posed to a correction
www.marketwatch.com
ITA Aero-Defence etf bottommed if 93 holds & it BO channel @103ITA has been in a downchannel even before invasion. It only overshot during invasion to make an ATH @113.37. Since then, it made an ABC corrective wave & came back down to retest channel base near the 93 zone.
BULLISH CASE: it bounced after retesting channel base @93 but was stalled by ma50.. 93 is a VOLUME PROFILE zone & is the Fib 0.382 retracement level. It is also the vwap from 2009 low. If 93 holds,
ITA will break above ma50 & target the 103 yellow resistance zone & try to BO of the downchannel started in May2021. 103 is the 0.382 Fib level.
BEARISH CASE WARNING: if ITA fails 93 zone & break down from the channel, there is very low volume below until 85, with only a small support at 90. Measuring the H&S move from ATH will send ITA to as low as the 80 zone.
Not trading advice
ITA - DAILY CHARTHi, today we are going to talk about ITA ETF and its current landscape.
This ETF holds exposure to U.S companies that manufacture commercial and military aircraft and other defense equipment, these companies hold great dependency on rare earth materials, so its costs hold a key significance on its margins, which might get a lift due to the most recent news coming from the key producer of rare-earths.
China that controls about 90% of the market, and 70% of the global production of rare earths, said this month that it's raising its annual mining quota to 132,000 tons, representing a 10% rise in comparison with last year. This decision's poised to have a significant impact on the markets due to the relevance of rare-earth is one of the most relevant elements to the modern industry, essential to the production of a wide variety of products. To have an idea, let's have a quick look at their uses on the industry:
Neodymium - Used to make powerful magnets that can be use on the many products from computer hard drives to motors for electric cars
Lanthanum - Used to make audiovisual components like camera lenses and other elements that work with light on the industry like cinema projection and illumination.
Gadolinium - Used on the fabrication of Television screens in the medical industry by been utilized in MRI and X-ray scanning systems.
Cerium - Used in the manufacture for cigarette lighters, as the Lanthanum it's used on the cinema industry, this element it’s also used by the crude refinery in its refining process.
Praseodymium - Essential to producing aircraft engines and along with magnesium, can create high-strength metals named Mischmetal.
Yttrium - Used in white LED lights, lasers that can cut through metals, also it's used in making of microwave filters for radars, and it's used to a catalyst in ethene polymerization.
Terbium - Used in mercury lamps and to improve the safety of medical x-rays and used in laser devices.
Europium - Used in printing euro banknotes, low-energy light bulbs to give natural light, also it's excellent at absorbing a neutron, valuable to control rods for nuclear reactors.
With this scenario in mind, we can weight that companies and other types of assets, that have a high level of dependence on this material could have relief on their profit margins during this year that China keeps this level of production. This relief might mitigate eventual headwinds that these assets may face and boost possible bullish sentiments.
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ITA - DAILY CHARTHi, today we are going to talk about the iShares U.S. Aerospace & Defense ETF and its current landscape.
With more than 400 planes grounded, 737 Max crisis is still backlashing Boeing Co., and now the Boeing problem could become the industry "problem" as the Federal Aviation Administration (FAA), may fundamentally change the certification process of aircraft, by prioritizing the human factor in the proceeding. The FAA wants to appraise how quickly airline pilots can react to emergency situations and possibly evaluating how the design o planes make it easier or harder for the pilot's reaction. The proposals need to be the debated of Congress, that has been criticizing the FAA administrator Stephen Dickson over its close relationship with the industry, Dickson it's a former employee of Delta Air Lines.
The effects of the 737 problems, combined with the slowing down economy entails strong headwinds for the whole industry, plus this new regulatory change, companies could see a shrinking of its orders, and more costs to have products in-line with the new possible FAA framework. The positive highlight of the day for the sector goes to the orders coming from several airlines, like Emirates that ordered 50 Airbus A350 jets in a deal worthing $16 billion; Air Arabia ordered 120 Airbus A320s in a $14 billion deal, and Etihad will take 20 Boeing Co. 787 Dreamliners.
Thank you for reading and leave your comments if you like.
To have access to our exclusive contents, join the Traders Heaven today! Link Below.
Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should be used or take it as financial advice.