THE CONSUMER DISCRETIONARY SELECT SECTOR ETF Forecast

THE CONSUMER DISCRETIONARY SELECT SECTOR ETF upgraded from Buy Candidate to Strong Buy Candidate after Tuesday trading session.
(Updated on Jul 02, 2024)

XLY Signals & Forecast

Mostly positive signals in the chart today. The THE CONSUMER DISCRETIONARY SELECT SECTOR ETF holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $183.13 and $178.88. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 9.91%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). 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. The ETF had a Golden Star Signal on Monday, June 03, 2024 in the short-term chart.

Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the ETF in question.

Support, Risk & Stop-loss for THE CONSUMER DISCRETIONARY SELECT SECTOR ETF

THE CONSUMER DISCRETIONARY SELECT SECTOR finds support from accumulated volume at $177.85 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

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 $2.68 between high and low, or 1.46%. For the last week the ETF has had daily average volatility of 1.41%.

Our recommended stop-loss: $180.83 (-3.08%) (This ETF has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 84 days ago.)

Trading Expectations (XLY) For The Upcoming Trading Day Of Wednesday 3rd

For the upcoming trading day on Wednesday, 3rd we expect THE CONSUMER DISCRETIONARY SELECT SECTOR SPDR FUND to open at $185.70, and during the day (based on 14 day Average True Range), to move between $184.30 and $188.86, which gives a possible trading interval of +/-$2.28 (+/-1.22%) up or down from last closing price. If THE CONSUMER DISCRETIONARY SELECT SECTOR SPDR FUND takes out the full calculated possible swing range there will be an estimated 2.45% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $177.85, some $8.73 (4.68%) from the current price of $186.58, our system finds the risk reward attractive.

Is THE CONSUMER DISCRETIONARY SELECT SECTOR SPDR FUND ETF A Buy?

THE CONSUMER DISCRETIONARY SELECT SECTOR holds several positive signals and is within a weak rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Strong Buy candidate.

Current score: 6.216 Strong Buy Candidate Upgraded

Predicted Opening Price for THE CONSUMER DISCRETIONARY SELECT SECTOR SPDR FUND of Wednesday, July 3, 2024

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