XLF - a good barometer for banking stocks to buy/sell
Updated
Look at XLF and GS, don't you think that they mirror each other in its chart pattern? I have find using XLF a good barometer to buy or sell banking stocks like Citigroup, JPM and GS. Again, XLF has shown temporary weakness with price action closing below 21EMA and a gap between 25.51 and 25.61 awaiting to be filled. 25.51 is slightly above the 50% FIB level which could potentially retrace and continue its bullish move. See my next chart for further explanation.
Note
Unable to attach further charts here. If one goes to a longer timeframe like 1 month, one can easily see that XLF is still in a bullish mode. The volume has shown a nice decreasing trend of selling and buying has been consistent throughout, i.e. 2009 to current, 2017. Also, notice at price zone of 20, it was resisted several times at the 618 FIB level before breaking out strongly on 3rd Oct 2016 and price has gone northwards since.
Pullbacks are healthy and great for those who are accumulating their favourite bank stocks. One must not let the doom and gloom reports by many experts creating too much fear in the market and stopping us from buying.
I continue to believe US tax reforms is good for the equity markets, USD has more to go upwards and especially the recent visit of President Donald Trump to China symbolised an exceptionally good move to the global economy. Happy trading:)
Note
will it rebound from 38.2 FIB level or close the gap ? we shall see
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