The Melodic Market Trends
MUSQ Global Music Industry ETF (MUSQ) was trading flat on Thursday, forming an inside bar pattern near the top of the green Marubozu candlestick printed on Wednesday.
Harmonious Investment Portfolio
The thematic ETF offers concentrated exposure to the complete music ecosystem, encompassing streaming, content and distribution, live music events and ticketing, satellite and broadcast radio, equipment and technology, and artificial intelligence. The fund holds multiple stocks that represent various companies and technologies critical to the music industry.
The Rhythmic Rise of Pure-Play Music Stocks
Notably, several pure-play music stocks within the fund have been ascending the charts, signaling increasing bullish sentiment among investors. Sphere Entertainment Co (SPHR) surged 91%, Spotify Technologies S.A. (SPOT) skyrocketed 102%, Live Nation Entertainment, Inc (LYV) climbed 40%, and Tencent Music Entertainment Group (TME) soared 100% in recent months.
Diverse Top Holdings
For investors valuing diversification, MUSQ’s top three holdings include companies with significant presence in the music sector while also having stakes in a range of industries. Amazon.com, Inc (AMZN) leads the pack with a weight of 7.92%, followed by Alphabet, Inc (GOOG, GOOGL) at 7.07%, and Apple, Inc (AAPL) at 6.46%.
The Symphonic Chart Analysis
The MUSQ ETF has been following a tight horizontal trading pattern since late December, with increasing bullish momentum observed since March 5. The fund’s Relative Strength Index (RSI) has been showing higher highs and higher lows, indicative of growing bullish sentiment.
- Thursday saw MUSQ forming an inside bar pattern on the daily chart, leaning bullish following a bullish Marubozu candlestick on Wednesday.
- MUSQ is in an uptrend, forming higher highs and higher lows in alignment with its RSI readings.
- Traders are watching for big volume movements to validate the current trend, with resistance levels at $25.36 and $25.76, and support at $24.78 and $24.34.
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