3 Sector ETFs With Great Weekly Trading Setups (XOP, XRT, XLY)

David Blair

For those traders who prefer trading ETFs vs individual names what follows are a few weekly charts to consider. They are all sector ETFs and are based on a simple understanding of supply and demand, tracked via trend lines and boxes (i.e., support and resistance).

NOTE: We use the WEEKLY chart for DIRECTION; and the DAILY chart is used to take ACTION).

Oil and Gas Exploration Sector ETF (NYSEARCA:XOP):  In April of this year XOP broke a 2 year down trend. It is now setting up the potential for a box break higher, confirming a trend reversal.

sector etfs oil gas exploration xop bullish trading setups_august 12

Retail Sector ETF (NYSEARCA:XRT):  XRT has been on fire since early July, as many retailers beat earnings expectations this quarter. What has yet to be determined is whether XRT can break penultimate resistance formed in late 2015 and again in April/May of this year. If it can, then a run back to ultimate 2015 highs could be targeted.

sector etfs retail xrt bullish chart trading setups_august 12

Consumer Discretionary Sector ETF (NYSEARCA:XLY):  XLY is currently breaking to new highs, clearing the highs from the end of 2015 after testing the penultimate highs from Summer 2015 and April/May of this year, holding above shorter and longer term trends.

sector etfs consumer discretionary xly bullish chart trading setups_august 12

Also from David:  3 Stocks That Are Ready To Make A Move

While technical analysis is the basis of our decision making process we know that it cannot predict the future, only help us manage it. The very best traders accept the limitations of forecasting, choosing to make adjustments when needed and adapting to changing market conditions when required to do so. [See my CORE BELIEFS post]. Therefore, the above analysis is based on current information and projected possibilities. The future may have other plans, however, and so should we…just in case.

Thanks for reading.

Thanks for reading. And as always, keep it simple.


Twitter:  @crosshairtrader

No positions in any of the mentioned securities at the time of publication.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.