XLF CHART REVIEW:
The financial sector ETF (ARCA:XLF), is comprised of multiple financial companies., you know those ones that hold your money. It is a good sector to follow as it can be a leader in the market. Over last two weeks XLF has lagged the market and formed a tight range between 24.60 and 24.20. On Friday, the sector looked like it was going to rally above the resistance but ultimately is closed near the bottom of this range. XLF and the sector looks like it could be in some trouble, based on its top 3 holdings.
Berkshire Hathaway B (NYSE:BRKb) is its top holding and it had a failed rally on Friday showing weakness at as it nears key support at 144.86. This level has provide rally points over the last year for BRK.B but each time the rallies has been weaker. Now BRK.B is testing this level again and we know from technical analysis the more a support level is tested the weaker it becomes. The downtrend from December coupled with the support at 144.86 has also created a bearish descending triangle pattern. Keep and eye on this level, if it breaks it is a good short and will push XLF lower.
Wells Fargo (NYSE:WFC) has been chopping around a tight range between 55.55 and 54.50, after breaking its longer-term uptrend since January. On Friday it closed near the bottom of this range. If it was to break this range it it would be bearish. But WFC has one more support level at 54.03, that could stop the short-term downtrend. This is the key level to watch, a break of this and WFC moves back to 52-50.
JPMorgan Chase (NYSE:JPM)- This is a sloppy chart to read but right off the bat you can see JPM broke its uptrend since January and Friday was down close to 2%, not very bullish. The stock has support at 60 but might move to 59.85 and close the unfilled gap. If JPM gets below this level, low 50’s are very possible.
