Technical analysis of XLI (Industrial Select Sector SPDR Fund)
Technical analysis of XLI (Industrial Select Sector SPDR Fund):
XLI is an exchange-traded fund (ETF) that seeks to provide investment results that correspond to the performance of the Industrial Select Sector Index. The ETF's holdings primarily include industrial conglomerates, aerospace, and defense companies.
From a technical perspective, XLI has been trading in a broad range between 95 and 103 levels since August 2021. Recently, the price has been hovering near the lower end of the range, around the 97 level, which could be considered a demand zone.
In addition, the Relative Strength Index (RSI) is currently around the oversold zone, which indicates that the selling pressure may be exhausted, and buyers could take control of the price action.
Considering the above factors, it is possible that XLI could see a move higher from the current demand zone of 97. If the price manages to break above the resistance level of 100, it could confirm the bullish bias and open the doors to test the upper range of 103.
However, in case the price breaks below the support level of 95, it could invalidate the bullish outlook and lead to a further decline towards the next support level of 92.
Therefore, traders and investors should monitor the price action near the demand zone of 97 and the resistance level of 100 to determine the next directional move in XLI.
XLI is an exchange-traded fund (ETF) that seeks to provide investment results that correspond to the performance of the Industrial Select Sector Index. The ETF's holdings primarily include industrial conglomerates, aerospace, and defense companies.
From a technical perspective, XLI has been trading in a broad range between 95 and 103 levels since August 2021. Recently, the price has been hovering near the lower end of the range, around the 97 level, which could be considered a demand zone.
In addition, the Relative Strength Index (RSI) is currently around the oversold zone, which indicates that the selling pressure may be exhausted, and buyers could take control of the price action.
Considering the above factors, it is possible that XLI could see a move higher from the current demand zone of 97. If the price manages to break above the resistance level of 100, it could confirm the bullish bias and open the doors to test the upper range of 103.
However, in case the price breaks below the support level of 95, it could invalidate the bullish outlook and lead to a further decline towards the next support level of 92.
Therefore, traders and investors should monitor the price action near the demand zone of 97 and the resistance level of 100 to determine the next directional move in XLI.