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XLF Oversold Looking To Rally

Published 03/25/2015, 01:02 AM
Updated 07/09/2023, 06:31 AM

XLF - Financial Services

Financial Select Sector SPDR Fund (ARCA:XLF) over the last two days has dropped after failing to break above its highs from December at 25.05. Yesterday we noted that XLF was looking weak and may sell off. Today that occurred but XLF is now nearing into Oversold territory and has a strong chance for a bounce. XLF may have broken below support at 24.46, but now nears a strong support area range of about .40. From 24.36 to 24, there is strong support for XLF and will be a battle for the bears. With XLF nearing support and our signal flashing Oversold, there is a good chance for a rally. It also provides a good risk reward opportunity. Below is a showing of the last “Oversold” signals. The last one was on 3/10 XLF has rallied 3% from then. The average return since 2013 for XLF 10 days later is 1.62% and 15 days later 3.52%. The odds favor a rally here.

Average

XLF Daily Chart

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