Each time IGV reached this area, it went on to rally roughly 50%.
I don't make a habit of catching falling knives or fighting trends.
But if you're going to step in, you need a very good reason — and even more importantly, clearly defined risk management. Without that, you're asking for trouble.
Momentum remains in a bearish regime, but there's also a bullish divergence in play, as the 14-day RSI continues to make higher lows despite lower lows in price.
As long as IGV holds above 76, the conditions are in place for a bounce.
That's my line in the sand. That's the level where the market proves me wrong.
If there's ever a time and place for Software to mean-revert higher, this is it.
To express this view, I also bought call options in Palantir Technologies $PLTR as part of our Breakout Multiplier strategy.
👉 Join us today to see the full trade details, risk-free.
Alfonso De Pablos, CMT
Director of Research, All Star Charts
