Sagar Nandi
ETF at Price Extreme High is Breaking below Memory Trendline Support.

$XLI. Industrial ETF.

360 Analysis Summary: If you have a long position in XLI, you may book or protect profit. And you may look for a short opportunity using a breakout trade setup.

All the snapshots are from around 11:00 AM EST on 25th Apr 2019.

Numbering in the text below follows the marking on the pictures.

IMPORTANT: As the price may move up or down during the day, you may confirm a swing trade setup at or near market close.

1) The Industrials sector is the worst performing sector as seen from CUE Edge Sector Scorecard. The heat-map shows that the sector is turning around from strength to weakness.

2) The ETF is displaying Bearish Headwind in the weekly chart.

3) XLI has Memory Trendline Support in the weekly chart, and that may be one reason to be cautious while taking a bearish trade in XLI.

4) In the daily, however, the Memory Support Trendline is broken, and that shows that in this timeframe the bears can push the price down and bulls are not able to support price at the moment.

5) Relative Performance shows price is severely underperforming the market. This weakness is in sync with the Industrials sector being the weakest sector today.

6) Daily Flow candle color turned bearish (magenta), and it also displayed a Bear Release signal (down arrow on top of the candle).

XLI Edge 2019-04-25_11-01-50.jpg  XLI Tech 2019-04-25_11-00-37.jpg 
1
Sagar Nandi
1) I took a short position in XLI using synthetic with a protective call out of the money on 25th Apr when I shared the post. I opened the position for a 0.01 credit.

2) Today, on 7th May, I closed the position for 0.56 credit. I closed it as the options were coming near expiry.

xli followup 2019-05-07_12-58-00.jpg  xli pnl 2019-05-07_12-58-39.jpg 
0

Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

CUE Elite
CUE Global & CUE Finder
CUE Edge, Vital, Index
Metastock Software (One-Time)
Metastock Data/Subscription
Data Region