Materials Select Sector SPDR (XLB) hits lower rail of channel
The materials sector has lagged most of the other sectors so far in 2019 and for the past year. The Materials Select Sector SPDR (NYSE: XLB) is up 13.23% so far in 2019, but that places it in seventh place among the 10 select sectors SPDR ETFs. The tech sector has experienced a gain of 27.2% so far this year and that is the top performance of the group.
Even though it has lagged so far this year, the XLB could be ready to make up some ground on the other sectors. The fund pulled back a little over the last few weeks, but that brought it down to the lower rail of an upwardly sloping trend channel. That lower rail is just above the 50-day moving average, giving the ETF two layers of support.
The daily stochastic readings for the XLB moved down close to oversold territory and appear to be turning higher now. The last time the indicators were this low was at the end of December when the fund jumped by over 10% within a matter of weeks. The stochastics did make a bullish crossover on April 29.
The Tickeron AI Trend Prediction tool generated a bullish signal for the XLB on April 26 and that signal showed a confidence level of 87%. The signal calls for a gain of at least 4% over the coming month and 85% of previous predictions on the ETF have been successful.
XLB in -2.42% downward trend, declining for three consecutive days on November 17, 2025
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 XLB declined for three days, in of 284 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where XLB's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Aroon Indicator for XLB entered a downward trend on November 13, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where XLB's RSI Oscillator exited the oversold zone, of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on November 12, 2025. You may want to consider a long position or call options on XLB as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for XLB just turned positive on November 11, 2025. Looking at past instances where XLB's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XLB advanced for three days, in of 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
XLB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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