Materials Select Sector SPDR Fund ETF Forecast

Materials Select Sector SPDR Fund ETF downgraded from Hold/Accumulate to Sell Candidate after Monday trading session.
(Updated on Apr 22, 2024)

XLB Signals & Forecast

Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The ETF should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Materials Select Sector SPDR Fund ETF holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $89.18 and $90.82. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Tuesday, April 09, 2024, and so far it has fallen -4.31%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

Support, Risk & Stop-loss for Materials Select Sector SPDR Fund ETF

On the downside, the ETF finds support just below today's level from accumulated volume at $83.58 and $83.09. There is a natural risk involved when a ETF is testing a support level, since if this is broken, the ETF then may fall to the next support level. In this case, Materials Select Sector SPDR Fund finds support just below today's level at $83.58. If this is broken, then the next support from accumulated volume will be at $83.09 and $80.98.

In general the ETF tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the ETF moved $1.39 between high and low, or 1.57%. For the last week the ETF has had daily average volatility of 1.22%.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations (XLB) For The Upcoming Trading Day Of Tuesday 23rd

For the upcoming trading day on Tuesday, 23rd we expect Materials Select Sector SPDR Fund to open at $88.90, and during the day (based on 14 day Average True Range), to move between $87.90 and $90.20, which gives a possible trading interval of +/-$1.15 (+/-1.29%) up or down from last closing price. If Materials Select Sector SPDR Fund takes out the full calculated possible swing range there will be an estimated 2.59% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $90.36 (1.47%) than the support at $83.58 (6.14%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is Materials Select Sector SPDR Fund ETF A Buy?

The Materials Select Sector SPDR Fund ETF holds several negative signals and despite the positive trend, we believe Materials Select Sector SPDR Fund will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this ETF. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Hold/Accumulate to a Sell candidate.

Current score: -3.501 Sell Candidate Downgraded

Predicted Opening Price for Materials Select Sector SPDR Fund of Tuesday, April 23, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.