In the strong reversal on May 10, many stocks and ETFs reversed from losses to gains throughout the day. One ETF in particular that caught my attention was the Consumer Discretionary Select Sector SPDR (NYSE: XLY).
The XLY dipped down to its 50-day moving average during the trading day, but then rallied back sharply to close higher. Back in August the XLY bounced off of the 50-day moving average on two occasions before moving to a new all-time high in September.
The reversal allowed the daily stochastic readings to make a bullish crossover and create a possible bullish signal. The indicators weren’t in oversold territory, but they made a similar move back in March before halting a brief pullback. After dipping down to the $107.50 level on March 8, the ETF rallied almost 10% over the next month.
The Tickeron AI Trend Prediction tool generated a bullish signal for the XLY on May 9 and that signal showed a confidence level of 77%. The signal calls for a gain of at least 4% over the next month. Previous predictions on the XLY have been successful an impressive 94% of the time.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where XLY declined for three days, in of 264 cases, the price declined further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on April 03, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on XLY as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for XLY turned negative on April 02, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
XLY moved below its 50-day moving average on April 12, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for XLY crossed bearishly below the 50-day moving average on April 12, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The RSI Indicator entered the oversold zone -- be on the watch for XLY's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XLY advanced for three days, in of 380 cases, the price rose further within the following month. The odds of a continued upward trend are .
XLY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 343 cases where XLY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category ConsumerDiscretionary