More In The Tank For Medical Device ETF

Quiet as it has been kept, the iShares Dow Jones US Medical Devices ETF IHI is doing pretty well for itself lately jumping more than 5% in the past month and almost 22% in the past six months. IHI's technicals are superior as the ETF recently broke above old resistance at $60, which turn into into new support. There's some more resistance less than $1 away from where IHI currently trades and this is old resistance from 2008 in the $64.30-$64.40 area. Clear that and IHI could sail into the mid-80s or higher. On the fundamental side, Americans had been putting off elective surgery during the recession, criming shares of medical device makers. Barron's issued a bullish view on Medtronic MDT today, saying the stock is trading at only 11x forward earnings and is still 27% off its all-time set five years. More appreciation for Medtronic should bode for IHI as the stock accounts for 12% of the ETF's weight. IHI will also get you exposure to Intuitive Surgical ISRG, the ideal way to play non-invasive surgical procedures. Bottom line: The fundamental and technical stars are aligning for more IHI gains.