The medical devices and scientific instrument and research companies are showing strength this month. Several in the space like Danaher (DHR) and EXACT Sciences (EXAS) look like they are ready to break out.
One way to take advantage of the broad sector strength is to trade the iShares US Medical Devices ETF (IHI). The daily chart of the fund shows it breaking our of a symmetrical triangle-like consolidation. A successful breakout projects a pattern target price that makes new highs.
The RSI indicator is tracking above its center line confirming the positive price momentum, and the Chaikin Oscillator is above its center line reflecting improving buying interest.
The trade offers a good risk-reward ratio at its current position.