Fresh buy on XLC, but a low-conviction signal
XLC dips 0.9% in the week its new buy signal fires, conviction still soft
Fresh buy on XLC, but a low-conviction signal
Our view last week
For the second week running, XLC is pushing higher: the 1.9% bounce came with 86% of volume on the buy side, and money flow — still negative — is easing back toward neutral. The Communications sector fund stays boxed in, though, between support in the 111.6 area and resistance in the 112.3 area: until that ceiling gives way, the decline keeps the upper hand.
This week's summary
XLC technical analysis: the US Communication Services sector ETF closed the week down 0.9%, with only 28% of the last session's volume on the buy side and a marked distribution phase. Yet this is exactly the week a new buy signal fires: a low-conviction case, 19th of the 20 fresh US Longs, with a signal strength of 45 out of 100. Entry quality is excellent, but this one calls for reduced size.
IQS Phase
35
ordinary
Signal Strength
45
medium · weak
Sizing
REDUCED
Ranking
#19 / 20
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Trade P&L %
+0.00%
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