Always consider hidden risks
The Material Sector (XLB): Back at the Critical Support Zone?
May 19 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 45.65, 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 now testing the ​Support Trendline on a relative basis that started back since October 9 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): Back at the Critical Support Zone?  $SPY, $XLB  #Trading #investing #spy #SP500 #xlb
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 )