Will the financial settle with this pullback?
Financials, which have been driven higher by the Fed and the ECB, is in an interesting sell zone.
We have minor structure level as well as the top of a rising Wedge.
We've already seen false breaks in both sides of the Wedge as the ETF ranged from 25$ to 23$ and now, judging by the decrease in volume $XLF may be setting up towards its next strong move.
Above 24$ we will probably see the re-test of previous highs and even new high. I don't like the R/R for the upside trade.
The bearish setup here is to trade the sell zone and place a stop loss above previous high. The potential targets (if the price will break below the lower trend line (dashed green) will be the 200 SMA line and the 22$ support zone
We have minor structure level as well as the top of a rising Wedge.
We've already seen false breaks in both sides of the Wedge as the ETF ranged from 25$ to 23$ and now, judging by the decrease in volume $XLF may be setting up towards its next strong move.
Above 24$ we will probably see the re-test of previous highs and even new high. I don't like the R/R for the upside trade.
The bearish setup here is to trade the sell zone and place a stop loss above previous high. The potential targets (if the price will break below the lower trend line (dashed green) will be the 200 SMA line and the 22$ support zone