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Materials Select Sector SPDRMM

Materials Select Sector SPDR

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XLB trade ideas

Materials at multi-level supportMaterials sector has been showing relative strength. It is actually 3th in YTD performance, after 1. Technology, 2. Discretionary (Mega-cap lead sectors) Today it is resting on the 100ema, which has been supportive since march 23rd crash. This level is also coinciding with early 2020's high, as well as 4 other tests of the support; including a failed breakout, which worked the next time it tried. OBV has been supportive of the uptrend. (BULL) RSI showing slight divergence as the last bottom late September has a slightly higher RSI(10) than the current one. (BEAR) A strong close below $60 would deny the support, and make the chart a short-term bearish one.
AMEX:XLBLong
by dorfmanmaster
Outside Day in Materials ETF and DuPontTechnology has undeniably led the market during the pandemic. While it’s usually wise to stick with the leaders, traders should also watch for signs of new sectors coming to life. We might have gotten one today in Materials, especially chemical companies like DuPont . The SPDR Materials ETF traded as low as $62.74 shortly after the opening bell today, undercutting Monday’s low by $0.25. Buyers immediately stepped in to drive it back into the black. They kept going until XLB was at $0.82 above Monday’s high -- a bullish outside day. The rally also pushed XLB above its previous all-time high from late January. Few materials are actively traded, but there are some, like DD. It also had a bullish outside candle. A month ago, its 50-day simple moving average (SMA) rose above its 200-day SMA. That’s a potentially bullish “Golden Cross” pattern. Materials are cyclical companies that could benefit from the global economy reopening from coronavirus. Many also have pricing power, which is interesting with prices surging for materials like lumber and iron ore. The sector may also appeal to some investors after Federal Reserve Chairman Jerome Powell embraced inflation in his Jackson Hole address last week. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
ALong
by TradeStation
XLB re-tests fib extension.Since the March lows, (XLB) has put in a strong performance, closing up 19.67% in April, 9.23% in May, 1.39% June, 7.21% in July, and so far 3.71% during this month. Whilst holding above its important medium and long term moving averages, XLB finds itself within sniffing distance of a yearly Double Top pattern and 1.618% Fib extension level (C), taken from the 2008 highs (A) and the crash lows of 2009 (B). Indicators, such as the Relative Strength Indicator (RSI) is perhaps showing weak diversion from XLB’s price action as it approaches the critical resistance levels mentioned, at (C) Any signs of weakness around these levels will most likely provide a good selling opportunity, for the short-medium term, with stops above the 1.618 fib level. Above resistance could see the Materials Sector re-test the top of the multi-year rising channel (1).
A
by the_short_hustle
10
How much will overbought Materials Sector Fall? XLBThe Materials Sector SPDR Fund has been in a bull trend since the end of the financial crisis. The trend has narrowed but remains upright since December 2016. The fund has been in a more specific trend channel since February and has created firm support and resistance levels. The fund is currently at that resistance level. Below I have laid out the reasons and levels to which the fund may dip will it continue its overall bull trend. When we take a look at technical indicators, the relative strength index (RSI) is at 64.9868. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. Currently the RSI is below overbought levels, however, the RSI has developed a resistance point of its own. The RSI has been reaching lower highs since December 2016 and is once again at this key resistance point. If the RSI begins to retreat, the fund should follow suit. The true strength index (TSI) is currently 4.4168. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. Like the RSI, the TSI has created relative resistance since December. This indicator is about to hit that threshold. Failure to substantially break above this resistance, the fund should drop in the near-term. The positive vortex indicator (VI) is at 1.1174 and the negative is at 0.7410. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. These indicators have been in a relatively tight trend since mid-February. When the positive VI was last at its current level, the fund tapered down which ultimately led to a drop to the fund's support line (dotted pinkish-purple on the chart). The stochastic oscillator K value is 92.2124 and D value is 87.3198. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The stochastic currently overbought, but the D value has not overtaken the K value, meaning the fund could produce gains for a few more days before ultimately turning downward. The last three times the fund hit its resistance, it did manage to drop down to its support level in less than 12 days. The first drop was in January over 9 trading days and it resulted in a 3.62% decline. March saw a 3.41% decline over then following 6 trading days while April had a 2.91% drop over 11 days. These timeframes and declines could be blueprints for the current bounce off of the resistance level. Considering the RSI, TSI, VI and stochastic levels, the overall direction favors a move to the downside. Based on historical movement compared to current levels and the current position, the fund could drop at least 2% over the next 23 trading days if not sooner.
AShort
by StockSignaler
QQQ is overbought; 1st Support at 195, 5.6% from the 206 peakQQQ rallied 33% year-to-date, from 154.26 (12/31/2018) to 204.98 (close on 12/11/2019), driven the Fed rate cuts (three times). The ETF is currently overbought technically as shown in MACD sloping downward. As investors rotate into the cyclical underperformers (energy, materials, industrial, and consumer discretionary), QQQ could potential consolidate and pull back. The first level of support is at 195, prior highs/lows near 50 day MA (196) and 197 (32.8% retracement of 182-206 upswing). Happy Trading!
ALong
by novvoll12
EPISODE 6/11: US MATERIALS- WAVE 5 RANGE+CYCLE ANALYSIS (XLB TA)Episode 6/11: US (SPX) Sectors Technical Analysis Series - 17th of July 2019 Brief Explanation of the chart : Wave Extension 1.618 target reached 64.34 (based on length of drop from 2009). Sin lines represent the stages of the cycle(it can't always overlap perfectly). Current bullish channel recovery since the drop that happened at the end of 2018 seems weak . This is in comparison to other sectors. Based on the assumption that Trump wins 2020 and/or US/China Trade deal goes through => I have labelled the ranges of potential wave 5 extension. There are 2 primary targets : 70$ and 75$. Otherwise, there aren't many indications that the current top at 64.4 would be broken. This is just a brief "free" and very detailed analysis. Perhaps in the future I might form a premium group, to whose members I will provide all the details of my research. >> I do not share my ideas for the likes or the views. This channel is only dedicated to well informed research and other noteworthy and interesting market stories .>> However, if you'd like to support me and learn more in the greatest of details, every thumbs up or follow is greatly appreciated ! -Step_Ahead_ofthemarket- Check my Previous episodes on the US Sectors : EPISODE 5: US INDUSTRIALS (XLI) : EPISODE 4 : Health Care( XLV ) : Full Disclosure: This is just an opinion, you decide what to do with your own money. For any further references- contact me.
A
by step_ahead_ofthemarket
'Set It And Forget It' Trade In XLBXLB (Materials ETF) has been consolidating for weeks and looks like it's getting ready to make a move higher. With Squeezes on both the Weekly and Daily Chart this looks like a 'set it and forget it' type trade: In a perfect world, I'll be looking for a pullback tomorrow where I can pick up the 58/57 Put Credit Spread: Put Credit Spread Sell 58 Jan Monthly Put Buy 57 Jan Monthly Put At the current price, you can nearly get a 1x1 spread is what I like doing. In this case (once again at the current closing price) risking $51 to make $49/contract. This is a trade I want to be able to put on and not have to worry about too much. Ideally, the trade will be near max profit far before the contracts expire. If you'd prefer to play an underlying, you can also trade DWDP which makes up 22% of the ETF. It too has a Weekly Squeeze setting up and its chart looks nearly identical to XLB: Playing the ETF is just an easy way to play to movement of the entire sector which as a whole looks bullish. With the ETF you're less susceptible to things like news based moves that can affect an individual stock without affecting the entire sector.
ALong
by TheCryptosaurusRex