XLF Chart Review And Its Top Holdings
PikerTrader | Mar 09, 2015 01:12AM ET
The financial sector ETF (ARCA:XLF), is comprised of multiple financial companies., you know those ones that hold your money. It is a good sector to follow as it can be a leader in the market. Over last two weeks XLF has lagged the market and formed a tight range between 24.60 and 24.20. On Friday, the sector looked like it was going to rally above the resistance but ultimately is closed near the bottom of this range. XLF and the sector looks like it could be in some trouble, based on its top 3 holdings.
Berkshire Hathaway B (NYSE:BRKb) is its top holding and it had a failed rally on Friday showing weakness at as it nears key support at 144.86. This level has provide rally points over the last year for BRK.B but each time the rallies has been weaker. Now BRK.B is testing this level again and we know from technical analysis the more a support level is tested the weaker it becomes. The downtrend from December coupled with the support at 144.86 has also created a bearish descending triangle pattern. Keep and eye on this level, if it breaks it is a good short and will push XLF lower.
Wells Fargo (NYSE:WFC) has been chopping around a tight range between 55.55 and 54.50, after breaking its longer-term uptrend since January. On Friday it closed near the bottom of this range. If it was to break this range it it would be bearish. But WFC has one more support level at 54.03, that could stop the short-term downtrend. This is the key level to watch, a break of this and WFC moves back to 52-50.
JPMorgan Chase (NYSE:JPM)- This is a sloppy chart to read but right off the bat you can see JPM broke its uptrend since January and Friday was down close to 2%, not very bullish. The stock has support at 60 but might move to 59.85 and close the unfilled gap. If JPM gets below this level, low 50’s are very possible.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.