Previously I had a reader suggest that I take a look at SKF. I did a write up on the ETF and I am revisiting the fund as a possible trade in the near future.
After falling over 80%, SKF is now in the second half of a rounded bottom pattern:
One concern I have with this chart is that we haven’t seen an increase in volume as SKF has started rising. This is just minor because we haven’t reached the top right of the rounded bottom, but look for an increase in volume to show interest from investors.
A positive that I have pointed out in the chart is that we see a couple weeks where SKF has seen some support as the Smart Money has stepped in and absorbed some of the supply on the way down. What this means is that the Smart Money has been positioning themselves to profit from a fall in the financial sector. This suggest a long position in SKF but only after we get some confirmation from the chart.