SPDR Select Sector Financial ETF – XLF
The Trade Ideas, Trade Idea of the Week
Hello traders and investors. Trade Ideas technology points to a breakout in the banking and financial sector. With many banks yet to report earnings for last quarter, the diversified play would be to use the sector ETF as the vehicle. SPDRs Select Sector Financial ETF ( XLF ) is therefore our Trade Idea of the week.
XLF is the Trade of the Week and is live on the opening print of Monday August 8. If you want to wait until the high of Friday 24.02 is taken out first then you can do so if the price gaps down at the Monday open. XLF is breaking out on the daily and weekly chart so there is likely to be some momentum continuing from Friday. We would not be surprised to see a gap up.
The suggested stop for this trade is at the 200 day moving average around 22.96. As always, calculate your share size in accordance with the suggested stop and max dollar loss you intend to put at risk for a position trade like this. The near term upside of XLF should be a test of the resistance of 25.62 and beyond.
Receive the Trade Ideas, stocks trading idea of the Week in your inbox each week by subscribing HERE
Please remember that Trade Ideas does not suggest day trading this type of alert. The idea behind the Trade of the Week is to give our customers opportunities that they may be able to stay in for an extended period of time. Please use proper risk management when making investment decisions.