7 Technical Charts To Watch This Week

The major indexes have started the week off on a positive note Monday morning. Heres a list of charts that Brean Capital technical analyst Frank Longman is watching this week.

For the Daily SP500 E-mini, Longman believes theres an inclination to test the primary uptrend at 2007 before a new high. He is predicting a bounce off of that trend line on the first test.

Media stocks were hit hard last week, and Longman is looking for the group to test long-term support levels. The damage thus far has us thinking that a correction of the uptrend that began at 2011s lows has begun and weve labeled the 38% retracement versus that low major support, he explains.

Despite recent weakness, Longman points out that the long-term bullish trend in biotech remains intact. He believes that a retracement of another 11 percent is in store for the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) before the sector resumes its uptrend.

Despite recent pressure, its not all bad news for the tech sector from a technical perspective. Longman still sees technical strength in the charts of Arista Networks Inc (NYSE:ANET), F5 Networks Inc (NASDAQ:FFIV), Mobileye NV (NYSE:MBLY) and Zebra Technologies Corp (NASDAQ:ZBRA).

Longman recommends taking profits on the SPDR S&P Regional Banking ETF (NYSE:KRE) after the ETF recently broke below its support line.

Longman also notes that weakness in regional banks should have owners of the Financial Select Sector SPDR ETF (NYSE:XLF) watching closely for a similar technical breakdown.

Finally, while Longman believes that WTI oil prices are still entrenched in a long-term downtrend, he feels a short position at this juncture would be more trouble than its worth. He predicts a short squeeze could be coming soon for crude oil based on comparisons to the price action of gold and copper back in 2013.