As uncertainty, volatility and geopolitical tensions rise, it is a common reaction for investors to flock to safety. Segments of the market that benefit the most from this shift in sentiment tend to be 澳洲幸运5官方开奖结果体彩网:commodities, 澳洲幸运5官方开奖结果体彩网:fixed income, 澳洲幸运5官方开奖结果体彩网:reserve currencies and equities that exhibit exceptionally strong fundamentals from within sectors such as financials, utilities and healthcare. In the paragraphs below, we'll take a look at the charts of three 澳洲幸运5官方开奖结果体彩网:exchange-traded funds (ETFs) that are favored by defensive investors and try to determine where they are headed over the weeks to come. (For a quick refresher, check out: Defensive Investing Is One Way to Manage Volat🎉ility.)

Invesco Defensive Equity ETF

One of the most common defensive ETFs that is used by 澳洲幸运5官方开奖结果体彩网:retail investors is the Invesco Defensive Equity ETF (DEF). The 99 澳洲幸运5官方开奖结果体彩网:large-cap holdings from across the major market sectors provide a level of 澳洲幸运5官方开奖结果体彩网:diversification that aims to provide superior risk-return profiles during periods of stock market weakness while still offering potential for gains during periods of market strength. Taking a look at the chart below, you can see that the bounce off of the 200-day 澳洲幸运5官方开奖结果体彩网:moving average (red line) has triggered a breakout beyond the 澳洲幸运5官方开奖结果体彩网:resistance of a defined 澳洲幸运5官方开奖结果体彩网:ascending triangle pattern. This commonly used 澳洲幸运5官方开奖结果体彩网:continuation pattern suggests that active traders will be setting their target prices near $52, which is equal to the entry price plus the height of the pattern. (For more on this topic, see: 澳洲幸运5官方开奖结果体彩网:Analyzing Chart Patte♛rns: Triangles.)

iShares Russell 1000 Value ETF

As alluded to above, during times of uncertainty, investments in equities that offer a superior value proposition tend to outperform. Active traders who are in search of a fund that offers exposure to a broad range of companies meeting this description may want to check out the iShares Russell 1000 Value ETF (IWD). Taking a look at the chart below, you'll notice that a 澳洲幸运5官方开奖结果体彩网:triangle pattern has formed on the chart. The recent breakout, as shown by the blue circle, suggests that the bulls are in control of the momentum and that the price could be headed toward target prices near $133. (For further reading, see: 澳洲幸运5官方开奖结果体彩网:A Guide to Value Investing🍸 Strategies.)

[The  course on the  includes interactive content and real-world examples to help you build your trading strategy, including the use of chart patterns such as triangles to determine your profit target.]

﷽ FlexShares Quality Dividend Defensive Index Fund

A relatively unknown ETF that could also be looked to during times of uncertainty is the FlexShares Quality Dividend Defensive Index Fund (QDEF). The income-bearing nature of the fund makes it an interesting choice for many long-term investors, and the recent break beyond the resistance of the triangle pattern suggests that there is adequate upside potential. 澳洲幸运5官方开奖结果体彩网:Stop-loss orders will likely be set either below the upper 澳洲幸运5官方开奖结果体彩网:trendline or the combined support of the ascending trendline and 200-day moving average, depending on 澳洲幸运5官方开奖结果体彩网:risk tolerance and 澳洲幸运5官方开奖结果体彩网:time horizon. Using the method🔥🅰 mentioned above of adding the height of the pattern to the entry price, near-term target prices will likely be set near $49.

The Bottom Line

Given the rise in uncertainty and geopolitical risk, long-term investors are finding themselves in need of searching for defensive positions. The funds mentioned above and the bullish chart patterns suggest that now could be a good time to buy, and the dotted trendlines are providing lucrative risk/reward scenarios for those who act early. (For further reading, see: 澳洲幸运5官方开奖结果体彩网:3 ETFs for Trading the Spike in 🍎Vola🃏tility.)

Charts courtesy of StockCharts.com. At the time of writing, Casey Murphy did not own a position in any of the securities mentioned.