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XLF Financial Stocks Hit 2nd Price Target, Now Threatening Key Support

The XLF (Financial Sector ETF) unofficial short trade posted here on June 3rd has hit my 2nd & final (near-term) target for a 6% gain. More importantly, the financial stocks are now stilling in a very precarious technical position on a key support level, a level likely to give way in the comings days/weeks. Something worth monitoring IMO. Previous & updated daily chart:

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Jun 24, 2016 3:51pm|Categories: Equity Market Analysis, Unofficial Short Ideas|Tags: |3 Comments

3 Comments

  1. greenlander1 June 24, 2016 7:37 pm at 7:37 pm

    Randy,

    So you are favoring a bounce early next week in XLF and the indexes?

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    • rsotc June 27, 2016 11:07 am at 11:07 am

      Hi @greenlander1 , I’m catching up on replies & questions from Friday & just came across this one from you regarding XLF. That support level that the financials closed at on Friday was an important technical level IMO & as of today, we smashed down through it impulsively, which is a clearly bearish event. XLF is now approaching the next support area which comes in around 21.30ish, although not as well defined as that T2 (2nd target) level that we closed at on Friday. As the financials are now approaching another support level after hitting & exceeding both of the price targets that I listed on the unofficial trade idea on XLF, I’d be more apt to cover (if you shorted when the setup was posted) that to add to a short position here.

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  2. greenlander1 June 27, 2016 1:29 pm at 1:29 pm

    Thanks Randy for your thoughts!

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