Monthly Time Frame:

  • XLF from the 2009 low has been rising within a well-defined channel ( Bearish Flag?)
  • So far we have a wide range monthly bar which has allowed a potent break out above the 2015 high and the 0,618 retracement from the 2007 top
  • The next resistance is located at the upper trend line at 23 +/-
  • In the “big picture” XLF has been underperforming the equity market since it still remains 43 % below the 2007 Top

XLF MONTHLY CHART

Weekly Time Frame:

  • We could make the case that from the 2015 high price has carved out a Triangle
  • XLF should be unfolding the wave (3) of a potential impulsive sequence
  • If this is the case once the current pattern is completed price could establish a Top

 

XLF WEEKLY CHART

 

  • The measured target of the assumed thrust is located at 23.20 (Above the upper trend line of the channel)
  • Price has now reached a potential trend line resistance at 21.76 +/-
  • The support is located at 20.81 ( 2015 high)

 

XLF WEEKLY CHART

 

Daily Time Frame:

  • Maybe the wave (3) is extending (now in wave iii)
  • Price has reached a potential resistance at 21.76
  • The support for an assumed wave (iv) pullback is located at 21.08
  • This move is very extended. Odds should favor some type of consolidation

 

XLF DAILY CHART

 

 

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