The ETF Technology Select Sector XLK ($154.39) presents significant opportunities to profit from practically all technology company stocks.
On Wednesday, all major indices ended the regular session in positive territory. The Dow gained over 400 points, while the S&P 500 rose by 1.19% and the Nasdaq Composite increased by 1.28%. Our robots started taking on more risk and getting rid of short positions yesterday, as a breakout in the upward channel and a small rally became possible.
Investor sentiment seems to have improved after Washington leaders announced progress in debt ceiling negotiations. Wall Street will also be monitoring the weekly jobless claims data to assess the strength of the labor market. The Philadelphia Fed Manufacturing Survey data for May, as well as existing home sales data for April, are also expected to be published on Thursday morning.
The ETF Technology Select Sector XLK ($154.39) presents significant opportunities to profit from practically all technology company stocks. The market has been stagnant for a while, and a new upward trend may be emerging.
On May 10, 2023, the Moving Average Convergence Divergence (MACD) for XLK turned positive. Looking at historical instances where XLK's MACD turned positive, the stock continued to rise in 40 out of 49 cases over the following month. This suggests that the odds of a continued upward trend are 82%.
Furthermore, following a 3-day advance of +1.44%, the price of XLK is expected to continue growing. Analyzing data from situations where XLK advanced for three days, in 312 out of 345 cases, the price further increased within the following month. This indicates that the odds of a continued upward trend are 90%.
Additionally, the Aroon Indicator for XLK entered an uptrend today. In 395 out of 434 cases where XLK's Aroon Indicator entered an uptrend, the price continued to rise within the following month. Therefore, the odds of a continued uptrend are 90%.
XLK in upward trend: price rose above 50-day moving average on September 19, 2024
XLK moved above its 50-day moving average on September 19, 2024 date and that indicates a change from a downward trend to an upward trend. In of 34 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The 10-day moving average for XLK crossed bullishly above the 50-day moving average on September 20, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher 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 XLK advanced for three days, in of 361 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 398 cases where XLK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for XLK moved out of overbought territory on October 15, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 cases where XLK's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on October 23, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on XLK as a result. In of 74 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 XLK turned negative on October 23, 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 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLK declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
XLK broke above its upper Bollinger Band on October 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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Category Technology