New highs and a fast growing industry group make for a powerful combination. Today’s article will focus on two ETFs that capture two fast growing industries, video gaming and esports. We will show why these two ETFs are leading, why a consolidation within an uptrend is bullish and why a 50-day SMA is better suited for mean-reversion trading.
ETFs hitting new highs last week are leading and should be on our radar. First and foremost, SPY and QQQ have yet to record 52-week highs in November, though both are close. ETFs that already hit new highs are leading SPY and QQQ. Second, an ETF is in an undeniably strong uptrend when hitting a 52-week high.
The charts below show two Video, Gaming & eSports ETFs, ESPO and HERO. Both hit new highs in early September, consolidated with triangles into early November and broke out last week. A consolidation within an uptrend is typically a bullish continuation pattern and the breakouts signal a continuation of the bigger uptrend. This is unequivocally bullish.