Bullish Triangle(s) in Housing ETF

Of all the non-technology corners of the market, housing has been pretty much the strongest group this year. Most people know the story: lean inventories, low interest rates, demographic trends and a post-Covid surge in suburban living.

As often happens, this fundamental backdrop has played out technically. The iShares US Home Construction ETF barely pulled back as volatility swept the broader market this month. It also made a higher low last week when the S&P 500 and Nasdaq-100 made lower lows.

That consolidation period is now turning into an ascending triangle, with resistance at the top around $56.50.

This can be a relatively straightforward bullish continuation pattern.

Looking at a shorter time frame this week, another smaller triangle is forming above the 8-day and 21-day exponential moving averages (EMAs). This has the potential to draw more buyers and sneak toward a breakout.

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