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May 19, 2023
- Upward momentum including 0.4% gain insufficient to breach pivotal resistance level at $131.65
- Fibonacci resistance at $131.8 holds firm with prices retreating 58.18 cents
While in the midst of a 14 day downtrend, Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. Health Care Select Sector SPDR Fund trades at $131.22 after gaining 52 cents (0.4%).
All in all, the fund has been on a negative trend for around a month. Having soared to a high of $140.1 approximately 5 months ago, Health Care Select Sector SPDR Fund is now trading 6.71% lower.
Following today's trading session, chart analysis suggests after reaching the known resistance zone beginning at $131.65, Health Care Select Sector SPDR Fund price action retreated approximately 43 cents. Trend-following investors would be interested to note that although up today, early price action saw Health Care Select Sector SPDR Fund dropping below its 200 day Simple Moving Average at $131.11 — an early indicator that a new downward trend could be emerging. Health Care Select Sector SPDR Fund failed to break through the $131.8 Fibonacci resistance level. Analysis based on the asset volatility indicates that Health Care Select Sector SPDR Fund's lower Bollinger Band® is at $130.32, indicating that the market is oversold and fertile for new buyers.
With market volatility ebbing, the current technical outlook indicates Health Care Select Sector SPDR Fund will remain range-bound for the immediate future.
Fundamental indicators – United States Existing Home Sales (Apr) came out at 4.28 million, while a consensus of analysts was expecting 4.3 million.
Other markets are also showing gains as having closed the previous session at $53.86, Sanofi is up 2.11% today to currently trade at around $55.
At the same time, Nike is down $4.44 from the beginning of the session and now trades around $114.43. Walt Disney closed at $91.56 (down 2.35%).
