Material Sector (XLB)

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The Material Sector (XLB): Critical Support Zone?
May 10 2016 ( From TradingView )

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The Situation

The Material Sector ETF (XLB) is still within a Downtrend
Channel that started back on April 28 2016.
(See first chart below - channel)

And as we are getting near testing the 50 DMA (Day Moving
Average) on the Material Sector ETF (XLB) at 45.20, we are at
a Major Support Trendline from a previous Breakout Zone
Trendline that started back since August 5 2015. (See first chart below - Grey Trendline - Ellipse).

The Material Sector ETF (XLB) started to under perform since April 29 2016 compare to the Mighty SP500 ETF (SPY) and near testing the 50 DMA (Day Moving Average) on a relative basis (ratio of XLB over SPY).
(See second chart below - Red line)...

But one crucial Technical factor is that we are near testing the Support Trendline on a relative basis that started back since July 27 2015 (previous Breakout Zone Trendline).
(See second chart below - Blue Trendline - Ellipse)...

So we are at Support Trendline for the XLB ETF price wise and on a relative basis also. It becomes critical then for Bulls to protect that support zone. May be the US Dollar behavior will be a must follow to see if that support zone will hold.

The Material Sector (XLB): Critical Support Zone? $SPY, $XLB #Trading #investing #spy #SP500 #xlb

Daily RATIO
Material Sector ETF XLB
over SP500 Index ( SPY ETF - Candles )
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 )

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