The Global X US Infrastructure Development ETF (PAVE): A Source of Strength
The Global X US Infrastructure Development ETF (PAVE) has demonstrated strength in recent years and is expected to continue outperforming in the coming months. PAVE primarily consists of industrial and materials stocks, which benefit from U.S. infrastructure development projects. The ETF has shown a long-term uptrend with increasing momentum, as indicated by the expanding histogram bars in the weekly MACD. PAVE has cleared short and long-term overbought signals, suggesting that the uptrend will continue. Despite its impressive rally, there is still room for PAVE to rise further with no resistance on the chart and no sell signals. Technical targets project a potential increase to $40 or even $42.
Support and Relative Performance
Prior resistance near $35 provides initial support for PAVE, along with the rising 50-day moving average. In relative terms, PAVE has been an outperformer compared to the S&P 500 since 2020. The ratio between PAVE and SPX consolidated in 2023 but has gained momentum after a breakout from a triangle formation in December. This suggests that PAVE will continue to outperform in the months ahead as the multi-year uptrend in the ratio resumes.
About Fairlead Strategies
This analysis is provided by Fairlead Strategies LLC for informational purposes only and should not be considered financial, legal, tax, or investment advice. Consult appropriate advisors for specific guidance. The information presented reflects the author’s current expectations and may be revised without obligation. The material uses technical analysis to evaluate market pricing and does not constitute a recommendation to buy or sell any investment. Fairlead Strategies assumes no liability for reliance on this material or any losses incurred as a result. Past performance is not indicative of future results. Opinions expressed may differ from those of Fairlead Strategies or its affiliates. Positions in mentioned financial instruments may be held by Fairlead Strategies or its affiliates.
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