AI
Wednesday, April 17, 2019 1:06:29 PM
The Health Care Select Sector SPDR Fund $XLV Is Now Attractive
As we all know, the health care stocks have been getting crushed this week. In fact, a fair case can be made that they have struggled since early March 2019 when the Health Care Select Sector SPDR Fund (NYSEARCA:XLV) traded as high as $93.45 a share. Today, the XLV is trading around the $86.00 level. Trader can easily see that the XLV is now trading sharply below its important 50 and 200-day moving averages. This is generally viewed as a sign of weakness and often an indication of further downside action in the sector. Now before we get too negative, traders should note that there is some saving grace for the sector coming up. First, the 100-week moving average is around the $85.60 area, so this is going to be some important support for the XLV near term. Second, there is also a very strong retrace level coming up as well and this could help support the XLV in the near term around the $85.50 level. So technically speaking, the XLV looks very attractive at this time despite many of the leading healthcare stocks being sold off.
Nicholas Santiago
InTheMoneyStocks
As we all know, the health care stocks have been getting crushed this week. In fact, a fair case can be made that they have struggled since early March 2019 when the Health Care Select Sector SPDR Fund (NYSEARCA:XLV) traded as high as $93.45 a share. Today, the XLV is trading around the $86.00 level. Trader can easily see that the XLV is now trading sharply below its important 50 and 200-day moving averages. This is generally viewed as a sign of weakness and often an indication of further downside action in the sector. Now before we get too negative, traders should note that there is some saving grace for the sector coming up. First, the 100-week moving average is around the $85.60 area, so this is going to be some important support for the XLV near term. Second, there is also a very strong retrace level coming up as well and this could help support the XLV in the near term around the $85.50 level. So technically speaking, the XLV looks very attractive at this time despite many of the leading healthcare stocks being sold off.
Nicholas Santiago
InTheMoneyStocks
