Consumer staples testing trend line on reclosing & stimulus news
Consumer staples tested and got rejected from a critical trend line this afternoon. The sector has been strengthening due to demand for groceries as economies reclose. Today it also got a bump thanks to news that people with incomes less than $40,000/year may get a second round of stimulus checks. This ought to help juice consumer demand a little. I've also been impressed with the staples sector's performance on earnings reports so far, and I'm expecting the sector to continue to beat analyst expectations.
The staples sector has been beneath a downward sloping trend line since February, but it has tested the trend line three times in fairly rapid succession and may be gearing up for a breakout. I've set an alert on the trend line and will be watching for a cross with good volume as my buy signal.
The staples sector has been beneath a downward sloping trend line since February, but it has tested the trend line three times in fairly rapid succession and may be gearing up for a breakout. I've set an alert on the trend line and will be watching for a cross with good volume as my buy signal.
Note
We can also draw a lower support trend line to form a triangle.Note
We have a trend line break:
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.