Industrial ETF: Potential Breakout
Industrial stocks have been rangebound for most of the year, but now they might be breaking out.
Today’s weekly chart features the SPDR Select Sector Industrial ETF, which holds stocks in groups like aerospace, general manufacturing, transportation and construction. The main pattern is the pair of lines at $120 and $126.
The lower price was near a weekly low in late February. XLI bounced there again in mid-April and mid-June. Sellers tried to break it last week but failed. The resulting false breakdown is a potentially bullish reversal pattern.
Next, peaks occurred around $126 in early April and mid-May. XLI tried to break out in late July before getting swept lower with the broader market. But now it’s back above the old resistance. It’s also on pace for a potential record weekly close, which could interest some longer-term momentum players.
Finally, retail sales have beaten estimates for two straight months and jobless claims have eased after increasing in June and July. That stronger economic backdrop may favor industrials, which are mostly viewed as cyclicals.
Standardized Performances for the ETF mentioned above:
SPDR Select Sector Industrial ETF (XLI)
1-year: +15.79%
5-years: +64.30%
10-year: +146.69%
(As of July 31, 2024)
Performance data shown reflects past performance and is no guarantee of future performance. The information provided is not meant to predict or project the performance of a specific investment or investment strategy and current performance may be lower or higher than the performance data shown. Accordingly, this information should not be relied upon when making an investment decision.
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Today’s weekly chart features the SPDR Select Sector Industrial ETF, which holds stocks in groups like aerospace, general manufacturing, transportation and construction. The main pattern is the pair of lines at $120 and $126.
The lower price was near a weekly low in late February. XLI bounced there again in mid-April and mid-June. Sellers tried to break it last week but failed. The resulting false breakdown is a potentially bullish reversal pattern.
Next, peaks occurred around $126 in early April and mid-May. XLI tried to break out in late July before getting swept lower with the broader market. But now it’s back above the old resistance. It’s also on pace for a potential record weekly close, which could interest some longer-term momentum players.
Finally, retail sales have beaten estimates for two straight months and jobless claims have eased after increasing in June and July. That stronger economic backdrop may favor industrials, which are mostly viewed as cyclicals.
Standardized Performances for the ETF mentioned above:
SPDR Select Sector Industrial ETF (XLI)
1-year: +15.79%
5-years: +64.30%
10-year: +146.69%
(As of July 31, 2024)
Performance data shown reflects past performance and is no guarantee of future performance. The information provided is not meant to predict or project the performance of a specific investment or investment strategy and current performance may be lower or higher than the performance data shown. Accordingly, this information should not be relied upon when making an investment decision.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
Exchange Traded Funds ("ETFs") are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
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