The Dow Jones Internet Index Fund $FDN has been on a tear, stair-steeping higher in a nearly vertical line for the past three months.
Price is knocking at the door to new all-time highs as it challenges its prior cycle peak from 2021.
However, whether or not this breakout sticks is a big question here.
The lower pane shows that the price is extended from its 200-day moving average.
Every time the price deviated from its long-term average in the recent year, it experienced a corrective wave before continuing its upward path.
So while I’m definitely anticipating some digestion at this resistance zone, I think FDN will eventually get the breakout done and take out this critical level just north of 250.
And when it happens, I want to lean into this leadership group. There is nothing better than a big base resolving into an empty space.
I’m bullish on tech into the year-end. And Internet stocks are a part of that theme.
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