Always consider hidden risks
The Material Sector (XLB): Near Break Out?
March 11 2016 ​( From TradingView  )
If you would like to receive our free daily markets updates, please Sign-Up

​​​​The Situation

​The Material Sector ETF (XLB) started to outperform ​​since
​January 28 ​2016 compare to ​the Mighty SP500 ETF (SPY) and
​the ​​20 DMA ​(Day Moving Average) ​​turned ​upward on February 4. 
​​​(See second chart below - Yellow line)...

​​But one ​crucial Technical factor is that we are testing the
​200 DMA 
​zone on that ratio (XLB over SPY). Last time we have
seen that was back in May 2015.​ 
​​​(See second chart below - Green line)...

​​​We are on a relative
​basis near the Resistance Trendline. (See second chart below - Blue Trendline - Ellipse)...

We broke on the upside ​​on February 3 the 20 DMA ​​(Day Moving ​Average - ​yellow line) on the Material Sector ETF (XLB) then at 38.76 followed by the 50 DMA ​(red line)​ then ​at 41.16, a ​good technical ​sign​ ​indeed.​ ​​​ We are near the 200 DMA at 44.20 (green line); it will be the biggest test for Bulls since we broke that 200 DMA on June 26 2015.  ​(See first chart below - Green line - Ellipse)

​The Material Sector ETF (XLB) is still within an uptrend channel that started back on January 20 2016 with 41.19 as support and ​44.83 as resistance. (See first chart below - channel)

As we are near testing the 200 DMA on the Material Sector ETF (XLB), we are near breaking a Major Resistance Trendline from a Falling Wedge that started back since June 18 2015. (See first chart below - Red Trendlines - Ellipse).

We need to break on the upside the 200 DMA  and the Resistance Trendline for a real break out on the​​ Material Sector ETF (XLB). 

The Material Sector (XLB): Near Break Out?  $SPY, $XLB  #Trading #investing #spy #SP500 #xlb
Material Sector ​ ETF XLB
over SP500 Index
 ( SPY ETF - Blue Line )
20 DMA ( Yellow Line )
​​50 DMA ( Red Line )
200 DMA ( Green Line )

Material Sector  ETF XLB
Daily Candles​
​20 DMA ( Yellow Line )
​​50 DMA ( Red Line )
200 DMA ( Green Line )