Technical Pulse: SPDR Select Sector Fund – Industrial March 17, 2023 228
Source: TradingView, PSR
SPDR Select Sector Fund – Industrial (NYSEARCA: XLI) Potential breakdown of the bearish rising wedge.
The price has broken down the bearish rising wedge accompanied by increasing volume and the Moving Average Convergence Divergence (MACD) technical indicator is displaying bearish divergence with lower highs registered, which could provides a bearish signal for further downside.
The price could continue to trade lower to retest the support zone at US$89-92, when calculating the target area for the uptrend channel breakdown by taking the height of the channel (US$7.88) and projecting onto the breakdown point at US$99.50.
The support zone is also confluent with a 50% Fibonacci retracement level at US$90.69, calculated using a swing high of US$104.18 and swing low of US$82.36.
Red box = Resistance zone
Green box = Support zone
About the author
Zane Aw Technical Analyst PSR
I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).