We could see it retest the $32-$33 area before fully reversing. But a Bearish Butterfly that finished at a 61.8% of the entire chart is a good bet to place on the downside. On a fundamental side, if interest rates rise we will see these guys get hit hard.
Ranking SPDR Sector ETFs vs each other, XHB, while falling from top spot during range bound price move never slipped out of top 5. Currently ranked #3, and as of 12/24 has broken out of range to upside. Quintessential momentum action.
Ranking SPDR Sector ETFs vs each other, XHB, while falling from top spot during range bound price move never slipped out of top 5. Currently ranked #3, and as of 12/24 has broken out of range to upside. Quintessential momentum action.
The daily chart for XHB has become too messy to trade effectively. Price reached resistance target of 61.8 fib (from 2007 highs-2009 lows) and is since in a wedge/triangle/complex H&S/consolidation. I am not sure of direction of the breakout but I am expecting volatility in the coming months. $30 and $31 have acted as strong res/supp points on the daily chart....
I have bought Dec. $31/$30 Strangle. I will look to add size next week if I can get better entries. This should be enough time for price to decide and confirm a direction. i am not sure of long/short but I am sure volatility should increase in either direction.
If it breaks ~26.91 it should go to the downside. If it breaks above 30 then it could retest old high. My personal prediction: it tests August 2012 support line.
H&S? Short below $30 (Stop: daily close above $31.10). Target 1 around $25 in the medium term. Tapering should hurt homebuilders most. But if, price rebounds from here we might actually see a bullish reversal, H&S negation and then target would be atleast $34 (76.4 fib from all-time highs)