To protect any gains, we recommend tightening the stop-loss for our long idea in the iShares Expanded Tech Software ETF (IGV) to $365 from $349.
A new long idea is small-cap office furniture company, MillerKnoll, Inc. (MLKN):
MLKN is poised to confirm a breakout above the weekly cloud (shaded area on the chart) this week in a long-term bullish reversal. The breakout is associated with notable improvement in long-term momentum, providing a tailwind.
MLKN has regained short-term momentum per the daily MACD (not shown) following a healthy period of digestion, supporting upside follow-through. Intermediate-term momentum is also positive, which suggests overbought conditions will continue be weathered well.
Initial resistance from a 38.2% Fibonacci retracement level (~$27.70) appears surmountable, in our view, which shifts our attention to the 50% retracement (~$32.20) as a long-term objective. To manage risk, the rising 50-day moving average, currently ~$23.00, can be used as a trailing stop-loss.
MillerKnoll, Inc. (MLKN, $25.89)
Target: $32.20
Stop-Loss: $23.00