MATERIALS SELECT SECTOR SPDR (XLB) Stock Technical Analysis
NYSEARCA:XLB - NYSE Arca - US81369Y1001 - ETF - Currency: USD
We assign a technical rating of 6 out of 10 to XLB. XLB has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.
XLB has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 87.20, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for XLB in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.
- Behavior of large players is measured by the Effective Volume indicator. This indicator inspects the 1 minute timeframe looking for high volume transactions.
- A Pocket Pivot is a price/volume accumulation pattern. A Pocket Pivot occurs when price moves up with volume higher than the maximum down volume registered in the previous 10 days.
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77.10
We found 2 important support areas.
- A support zone ranging from 85.53 to 87.20. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
- Support @77.88 from a horizontal line in the weekly time frame.
When analyzing the resistance we notice 2 important areas.
- Resistance @87.84 from a trend line in the daily time frame.
- Strong resistance @89.46 from a horizontal line in the daily time frame.
The Technical Rating and Setup analysis above combine different indicators and trends in different timeframes. Individual signals from indicators may give more contradictive signals and should always be interpreted in the more global context.
| Indicator | Value | Signal | Comment |
|---|---|---|---|
| ChartMill Long Term Trend Indicator | NEUTRAL | NEUTRAL | The long term trend for XLB is neutral. |
| ChartMill Short Term Trend Indicator | UP | POSITIVE | The short term trend for XLB is up. |
| ChartMill Relative Strength | 40.11 | NEUTRAL | XLB is not amongst the best or worst performers on the market. |
| Simple Moving Average/SMA (20) | UP | POSITIVE | The current price of XLB is above the rising SMA(20). |
| Simple Moving Average/SMA (50) | UP | POSITIVE | The current price of XLB is above the rising SMA(50). |
| Simple Moving Average/SMA (200) | DOWN | NEGATIVE | The current price of XLB is below a declining SMA(200). |
| Relative Strength Index/RSI (14) | 61.24 | NEUTRAL | The RSI value for XLB is a neutral value. |
| Moving Average Convergence Divergence/MACD (12, 26, 9) | 0.03 | POSITIVE | The MACD value suggests XLB has a positive trend. |
| Stochastics (14,3) | 78.41 | NEUTRAL | The Stochastics value for XLB is a neutral value. |
| Average True Range in percent/ATR (20) | 1.39 | LOW VOLATILITY | The low ATR as a percentage value for XLB suggests low volalility. |
| Average Directional Index/ADX (14) | 13.32 | NEGATIVE | The low ADX value for XLB suggests a weak or negative trend. |
Important!: this is just an example which is fully automatically generated based on the analysis above and should in no way be interpreted as a suggestion. Always make your own analysis and determine your own entry and exit points.
| ENTRY | EXIT | DISTANCE | CAPITAL |
|---|---|---|---|
| 87.85 | 85.52 | 2.33 (2.65%) | 25.00% |
| An entry @87.85. This is a Buy Stop order right above the resistance zone. | An exit @85.52. This is a Stop Loss order right below the support zone. | The worst case loss on the trade is limited to 2.33 points, which is 2.65%. | When investing 25.00% of your capital in this trade, your total portfolio risk will be 0.66%. |
- The generated setup is based on the nearest support and resistance areas. If you are looking for a more long term trade, probably a wider stop is advisable.
- This trade setup was generated fully automatically and should not be interpreted as trading advice. Always check the related news for upcoming earnings or other events. Make your own analysis and trade at your own responsibility.
87.74
+0.89 (+1.02%)