A Real Money subscriber wants to be involved with robotics and artificial intelligence in the years to come but doesn’t believe he is a good stock picker. So what should he do?
Let’s check out the charts of the Global X Robotics & Artificial Intelligence ETF (BOTZ) .
In the daily bar chart of BOTZ, below, we can see that the shares have been cut in half in the past year. BOTZ is trading below the declining 50-day moving average line and the bearish 200-day moving average line.
The On-Balance-Volume (OBV) line has declined the past year and remains in a downward trend. The weak OBV line confirms the weak price action. The Moving Average Convergence Divergence (MACD) is bearish.
In this weekly Japanese candlestick chart of BOTZ, below, we see a bearish picture. Prices are in a downward trend trading below the bearish 40-week moving average line. I do not see any bottom reversal patterns on the candles.
The weekly OBV line is bearish and the MACD oscillator is poised for another downside sell signal.
In this daily Point and Figure chart of BOTZ, below, we can see a downside price target in the $16 area.
In this weekly Point and Figure chart of BOTZ, below, we can see a downside price target in the $16-$15 area.
Bottom-line strategy: Robotics and AI are our future but the price of BOTZ could slip lower in the weeks ahead. Keep BOTZ on your shopping list and let’s visit with the ETF again in December.
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