Chart of the Day - Tuesday, April 6th, 2021

Today’s Chart of the Day was shared by Dan Gorghuber (@Futures_Runner). It's a daily candlestick chart of the Investco Water Resources ETF ($PHO) over the past year and a half. Water is breaking out folks! This ETF is comprised of companies in the water industry including, Roper Technologies ($ROP), American Water Works Company ($AWK), Xylem ($XYL), and more. As you can see, price is breaking out to all-time highs after consolidating for three months at the 1.618% Fibonacci extension of the March 2020 decline. Dan points out that this isn't just any ole' breakout, it's a breakaway gap. Breakaway gaps are when price gaps above resistance, adding bullish conviction to the breakout.