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May 28, 2023
Friday at a glance: a bright session dominated by bullish sentiment helped XLF to close 24 cents higher, while setting a $31.88 to $32.19 session range.
Technical analysis of Financial Select Sector SPDR Fund's past price action reveals multiple support and resistance levels: Financial Select Sector SPDR Fund could be slowing down soon as it approaches resistance at $32.24. Of course, crossing it might suggest further gains are ahead. With regards to technical trend indicators, chart analysis show that Financial Select Sector SPDR Fund made an initial breakout above its 3 day Simple Moving Average at $32, a potential indicator of a newly emerging bullish phase. Friday's price action generated a Japanese candlestick pattern showing a Morning Star, which is a bullish visual pattern consisting of three candlesticks. The pattern forms following a downward trend and tends to indicate a reversal before the start of a new upward climb. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $32.78, thereby suggesting that Financial Select Sector SPDR Fund is becoming overvalued.
All in all, the technical analysis suggests Financial Select Sector SPDR Fund has no clear-cut direction.
Other markets are also showing gains as Costco jumps 4.26% Friday and closed at $486.55. Intel went up by 5.84% Friday, and closed at $29. Netflix added 5.54% and closed around $359 Friday.
All in all, the fund has been on a negative trend for around a month. Approximately 3 months ago, Financial Select Sector SPDR Fund reached a significant high of $37 but has struggled to hold onto its gains and declined 13.92% since then.
