Xlf (Financials)36.00 is the brickwall!
Bearish harami setting up here.. watch for a double top into a correction.
XLF trade ideas
XLF daily - decision time coming soonXLF indicates two possible patterns, bullish and bearish.
For a bullish option it develops a large inverted SHS pattern, while for a bearish one it develops a rising wedge.
The last trading day last week price gaped down due to bad financial reports, however the day closed in the positive with solid volume which is bullish.
The RSI is in overbought territory and indicates a likely correction, which is bearish.
MACD histogram is ticking up and both MACD and signal lines are above the zero line which is bullish, however negative divergences have developed which is bearish.
Overall: if the day closes above the upper blue trend line, a bullish reversal pattern inverted SHS would be triggered, which would be extremely bullish for XLF as well as for the entire market, because the market cannot go against the banking sector. Resistance would be the ATH area.
On the other hand, in the event of further negative financial reports and a drop below the lower trend line, a bearish rising wedge pattern would be activated and the price would certainly continue to fall. Support would be first the right shoulder and then the head of the pattern marked with a red dotted line.
XLF SpeaksXLF has broken downtrend, successfully produced a Gartley retest, and now closes just above the cloud, and just above prior swing high. Financials must be looking ahead to some respite in FED rate hikes, since they are sensitive to short term interest rates. Along with SOX, XLI, showing similar trend breakouts, this is encouraging for bulls.
Sector ComparisonToday is the end of the first trading week of 2023. What sectors are leading the pack and which sector is going down? Here's a 1hr ext chart comparison, with the tickerTracker MFI Oscillator set to 20, color coordinated with these 11 sector etf tickers.
XLF financials
XLRE real estate
XLE energy
XLU utilities
XLK technology
XLB materials
XLP consumer staples
XLY consumer discretionary
XLI industrials
XLC communication services
XLV health care
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XLF - One more short-term upside. Mid-term potential bullXLF had a strong close yesterday night, and with the RSI showing bullish divergence, the stock may continue to rise towards the supply level at 36.00. Afterwhich, the potential sell-off may find itself at a support at 33.48, which potentially could form a bullish flag. Larger pattern saw a cup and handle formation.
XLF potentially headed lower to 26I think given the deteriorating macro environment there is a decent chance XLF breaks below 30 and heads to 26 in the coming 6-12 months.
$XLF: Sideways or down nextThere's a trend that is expiring in financials here, which makes me uneasy for the broad market. Within the next 8 trading days we can expect either a sideways move near the target here, or a drop back to where the last trend signal started @ $34.1. I'd keep an eye out for reasons to short the market soon, financials might be warning us of impending risk if price drops from here next week.
Good luck!
Ivan Labrie.
Triple Top Forming on XLF AMEX:XLF
Triple top forming on XLF, while price broke 200sma, it now runs into the 2022. resistance line that provided support in 2021.
Fib at 50% of 2022 high, highest MACD numbers in almost 18mths, RSI at overbought border, and tested resistance zone upcoming, current charts displaying to many negative indicators for upside profit
Financial recover soon?XLF which is an index of Financial Sector is currently retesting the top of 2007 (before Subprimes crisis) and the top of 2019 (before the Covid19 crisis).
Remember, a resistance often flip into a support when broken.
This may a very nice opportunity with a correct Risk/Reward ratio to play a bounce here.
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Financials XLF Flipping Technologies XLK..The last time Financials flipped Technologies was in 2000 which lead to six years straight of overperformance by the banking industry.
This is an important relationship to keep an eye on. These types of trends tend to stick for long periods of time and can lead to generational trades.
Hourly Wyckoff SetupHey all, I've marked up XLF's chart. This looks like it's put its top in, and is setting up to head lower, soon- the false breakout+backtest look is what excites me. Here's my trade idea.
$XLFLooking for retest of lower channel before making a decision to long or short. There seems to be some momentum to this move but the FED could step on this rally easily next week.
Banks nearing the end of their Bull run? XLF Approaching resistance of Bear channel here .. Volume is drying up
Possible XLF long setupHey all, we've got financials earnings this morning coming up. If we are to dump early as I suspect, I think there will be a very solid BTD opportunity. Here's my trade idea going into tomorrow.
XLF Cup and HandleBanks looking like a buy area, anything cheaper is kinda to cheap... I would look for some long term here with inverse hedging. Not sure how this formation will play out, but it it seems short term bullish. Let's have a good end of the year.
XLF long ideaHey, I'm not taking this trade, but instead, I'm playing this indirectly; I think financials are going to bounce here at support.
XLF daily bullish hammerOrder BUY XLF ARCA Stop 30.88 LMT 30.88 will be automatically canceled at 20230101 00:00:00 EST
XLF daily bullish hammer wave 4 of downtrend into 50% fibonacci retracement gotta be quick countertrend.
XLF weekly set up for ABCXLF weekly set up for ABC expect some form of retracement can zoom in on daily but expect ot to be volatile.
SHORT | XLFAMEX:XLF
Possible Scenario: SHORT
Evidence: Price Action
It's bearish as hell, and it's correlated to XLK by 0.85; it gave us the early signal of the crash today; I expect a 10% -20% correction in Tech Large Caps soon.
TP1: 35$
*It's my idea and could be wrong 100%.
