US $Sector Monthly Update. Sector Rotation is key in the institutional world. As a result, we analyze the 10 Major US $Sector every month. We will cover the following sectors in this article:
- XLK -> Technology
- XLI -> Industrial
- XLF -> Financial
- XLB -> Materials
- XTL -> Telecomm
- XLV -> Healthcare
- XLU -> Utilities
- XLY -> Consumer Discretionary
- XLP -> Consumer Staples
- XLE-> Energy
Here is the summary of the analysis:
Note; All charts are provided by TradingView with the IMTF™ Indicator
XLK: Technology Sector
Below is the weekly chart. Price is in a strong major bullish trend that yet to go through a major pull as of yet. The trend started July 2016. Last week, price broke out of a small consolidation pattern and trying to reach the resistance at 54.98.
Here is the daily chart:
XLI: Industrial Sector
Below is the weekly chart. Price is in a strong major bullish trend that yet to go through a major pull as of yet. It is trying to go through a medium pull back now.
The trend started July 2016. Price is retesting the last major high. The question now is if the last high will be broken or if price will reverse. The major support is 63.5 with resistance at 67.13.
Here is the daily chart. The support is 65.30.
XLF: Financial Sector
Below is the weekly chart. Price is in a strong major bullish trend that yet to go through a major pull as of yet. It is trying to go through a medium pull back now.
The trend started Oct 2016. The support is at 22.35 and the major resistance is at 24.10.
Here is the daily chart. The daily chart is in a bearish consolidation pattern with a support of 22.97 and resistance of 24.10. If the support is broken, the daily time frame will enter a bearish trend the sector could possibility go through a major pull back.
XLB: Materials
Below is the weekly chart. Price is in a strong major bullish trend that yet to go through a major pull as of yet. It is trying to go through a medium pull back now.
The trend started Nov 2016. Materials sector is in a bullish trend but consolidating between 51.37 and 53.44.
Here is the daily chart. The daily chart confirms the weekly time frame. A minor support at 52.42 holds the middle of the consolidation pattern. As long as this support holds, there is still a high probability of price going higher. If the support at 51.37 holds, a bearish trend can start which would led to a major pull back long term.
XTL: Telecomm
Below is the weekly chart. Price is in a strong major bullish trend that yet to go through a major pull as of yet. It is trying to go through a medium pull back now.
The trend started July 2016. Price is close to a medium pull back to 67.57. The resistance at 71.70 is forcing the medium pull back at this time. If the support breaks, a major pull back to the cloud could occur.
Here is the daily chart. Price is consolidating between the resistance of 71.70 and support of 67.57.
XLV: Healthcare
Below is the weekly chart. Price is in a bullish consolidation pattern. Couple of weeks ago, it retested the major resistance 75.93, the top of the consolidation pattern.
The major support is at 72.75 with a minor support at 74.44.
Here is the daily chart. Price didn’t retest the major support at 72.75 which means the bullish strength is still strong. Also, the minor resistance at 74.44 was broken. This indicates here is a high probability of retesting the high and breaking it too.
XLU: Utilities
Below is the weekly chart. Price is in a bullish trend continuation pattern. The consolidation pattern is between 45.36 and 52.16 with minor support at 48.77.
Here is the daily time frame. The daily time frame is in a bullish consolidation pattern too. The daily hasn’t gone through a major pull back either. This is indicating that there is high probability it will retest the high and possibility break it.
XLY: Consumer Discretionary
Below is the weekly chart. Price is in a major bullish trend. The trend started November 2016 and has yet to go through a major pull back. In fact, it has not even gone through a medium pull back yet.
The major support is 87.90.
Here is the daily time frame. The daily is supporting the weekly.
XLP: Consumer Staples
Below is the weekly chart. Price is in a bullish tend continuation pattern. It went through a major pull back in November 2016 and is now trying to retest the high.
The major resistance is 55.50 with a minor support at 53.00. As long as the minor support holds, there is high probability to break the high and the trend continue. If the support breaks then there is high probability we will enter a consolidation pattern.
Here is the daily time frame. The daily time frame is still very strong bullish with the cloud holding up price.
XLE: Energy
Below is the weekly chart. Price is in a consolidation pattern. Initially, it started a bullish trend but failed to follow through when it broke the support at 72.77. Since the bullish trend failed, it now has a high probability to consolidate.
The major resistance is 71.43 with a major support at 60.90.
Here is the daily time frame. The sentiment is bearish with the possibility of starting a bearish trend if the support at 67.54 is broken.
If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com
EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.
