US Communications, the ETF stalls and waits for the breakout
XLC slips 1.4% and stays below resistance at 113.5
Our view last week
XLC, the US Communication Services sector ETF, closes the week up 1.5% after a 3% bounce off the daily 20-day moving average, but price stays boxed between the nearest support and resistance, a step from the breakout level in the 113.5 area. Under the hood, volume keeps contracting and the distribution phase drags on: signal strength drops to 27 out of 100. XLC technical analysis: better to wait for the break than to front-run it.
This week's summary
XLC, the US Communication Services sector ETF, closes the week down 1.4% and stays boxed between the nearest support and resistance, a step from the breakout level in the 113.5 area. The buy signal has been open for 5 weeks but Strength drops to 27 out of 100: under the hood, volume is contracting and the distribution phase drags on. Our desk stays cautious: better to wait for a confirmed break than to front-run it.
IQS Phase
53
ordinary
Signal Strength
27
low · fading
Sizing
MINIMUM
Ranking
#151 / 167
US stocks in progress
Trade P&L %
+0.68%
from signal to date, no stop loss
Rank position
ranks 151st among the 167 Longs already running for US stocks in our ranking, with a signal strength of 27 out of 100.
Sector context
SectorETF Settoriale
Benchmark ETFXLC
Sector regimein strong phase
Performanceweekly -1.37% · monthly +2.01%
XLC belongs to the etf settoriale sector (reference ETF XLC). The sector is classified in strong phase according to our weekly reading.
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