Sector: Consumer Discretionary Select Sector SPDR Fund
Ticker: XLY
Exchange: NYSE Arca
Industry: Exchange-Traded Fund
Introduction:
Welcome to our weekly technical analysis. Today, we're looking at the Consumer Discretionary Select Sector SPDR Fund (XLY), listed on the NYSE Arca exchange. The weekly chart is currently exhibiting an inverted Head and Shoulders pattern, suggesting a potential bullish reversal.
Inverted Head and Shoulders Pattern:
An inverted Head and Shoulders pattern is typically seen during periods of market consolidation following a downtrend. It signals a potential reversal, characterized by three troughs, with the central one (the head) being the deepest, and the two on the sides (the shoulders) being shallower and roughly equal in depth.
Analysis:
Previously, the XLY sector was in a clear downward trend, as represented by the blue diagonal resistance. However, the emergence of an inverted Head and Shoulders pattern during the consolidation phase suggests a potential bullish reversal. Impressively, the right shoulder is higher than the left shoulder, adding to the bullish sentiment.
Furthermore, the price has broken above the 200 EMA and the horizontal resistance at 153.40, reinforcing the bullish environment. The current consolidation at this previous resistance level, indicated by a dragonfly doji, may solidify the breakout. However, confirmation will only come with the closure of the current candle.
Should the breakout hold, the price target is set at $177, indicating a potential upside of approximately 16.7%.
Conclusion:
The weekly chart of the XLY sector reveals an intriguing setup in the form of an inverted Head and Shoulders pattern, suggesting a potential bullish reversal. This may signal profitable trading opportunities in stocks within this sector over the coming weeks.
As always, this analysis should be used as part of your overall market research and risk management strategy, and not as direct trading advice. Remember, trading carries risk, and past performance is not indicative of future results.
If you found this analysis helpful, please consider liking, sharing, and following for more insights. Wishing you profitable trading!
Best regards,
Karim Subhieh
Ticker: XLY
Exchange: NYSE Arca
Industry: Exchange-Traded Fund
Introduction:
Welcome to our weekly technical analysis. Today, we're looking at the Consumer Discretionary Select Sector SPDR Fund (XLY), listed on the NYSE Arca exchange. The weekly chart is currently exhibiting an inverted Head and Shoulders pattern, suggesting a potential bullish reversal.
Inverted Head and Shoulders Pattern:
An inverted Head and Shoulders pattern is typically seen during periods of market consolidation following a downtrend. It signals a potential reversal, characterized by three troughs, with the central one (the head) being the deepest, and the two on the sides (the shoulders) being shallower and roughly equal in depth.
Analysis:
Previously, the XLY sector was in a clear downward trend, as represented by the blue diagonal resistance. However, the emergence of an inverted Head and Shoulders pattern during the consolidation phase suggests a potential bullish reversal. Impressively, the right shoulder is higher than the left shoulder, adding to the bullish sentiment.
Furthermore, the price has broken above the 200 EMA and the horizontal resistance at 153.40, reinforcing the bullish environment. The current consolidation at this previous resistance level, indicated by a dragonfly doji, may solidify the breakout. However, confirmation will only come with the closure of the current candle.
Should the breakout hold, the price target is set at $177, indicating a potential upside of approximately 16.7%.
Conclusion:
The weekly chart of the XLY sector reveals an intriguing setup in the form of an inverted Head and Shoulders pattern, suggesting a potential bullish reversal. This may signal profitable trading opportunities in stocks within this sector over the coming weeks.
As always, this analysis should be used as part of your overall market research and risk management strategy, and not as direct trading advice. Remember, trading carries risk, and past performance is not indicative of future results.
If you found this analysis helpful, please consider liking, sharing, and following for more insights. Wishing you profitable trading!
Best regards,
Karim Subhieh
KSC
