tech
A rebound with staying power may be in the cards for this beat-up medical devices ETF
This latest bounce for the iShares U.S. Medical Devices ETF (IHI) is no ordinary rally, according to the charts.
TL;DR
- IHI has been in a downtrend since early 2026, underperforming major indices.
- Recent MACD buy signals have emerged, with the latest showing potential as IHI tests its downtrend line.
- A potential double-bottom formation is developing, with resistance at the 51 level aligning with the 50-day moving average.
- The 14-day relative strength index has moved above 50 for the first time since late February.
- On a monthly log chart, IHI has reached a major support zone in the mid-40s, previously acting as a bounce point.
- Buying weakness within this long-term range has historically been rewarding.
- The IHI/XLV relative strength line has been in a steep decline, reaching historically oversold levels on the 14-month RSI.
- The IHI/XLV relative line has fallen back to a breakout zone from 2016.
- Multiple constructive technical developments suggest a more favorable risk/reward profile.