On the other side of the equation from the earlier GDX update, we have the bearish Financials ETF XLF, losing important support today. MACD, RSI and AROON are all down to boot.
The market is flying around as volatility cuts both ways, but a low risk bearish setup for XLF (one of the few indexes/ETFs I’ve found that has made a definitive lower low to December) would be on a bounce to test the breakdown around 23.75. A bounce could take it has high as the 50 day moving average, but that looks less likely.
Those bearish on the Financials can short this ETF or use options or other tools as they see fit to gain leverage. We’ll define the trade based on XLF, however.
Sell Short: 23.75
Downside Target: 22
Stop Loss: Above 24.25
A reminder that chart based NFTRH+ updates are just trade setup ideas, which may not be revisited as the parameters are already noted. They are meant as a starting point for further research if interested. Fundamentals-based ideas are also provided for your further research only. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Further, I am not a fundamental stock analyst so… caveat emptor.