Will This 52-Week High Be Broken?
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Even though the market is ready to open relatively flat, we have managed to secure our third winner in a row in my Smart Trades trading service. This choppy market is not the ideal market for us or really any trader to trade in, but we are waiting for the market to gives us clear direction one way or another before getting more aggressive with our trades.
The big level on our watch is on the S&P, a good benchmark for our trading. If the S&P can break above and hold 4100, that would open the door to a possible rally to our second price target. While we wait for this to happen to really turn up our trading, there is one trade in the Industrial Sector that has caught our eye.
Industrial Select Sector SPDR ETF (XLI)
Looking at the chart for XLI, we can see a somewhat bullish move taking place, however, there are some levels overhead that price would need to break through in order to justify a long trade here.
As you can see in the video below, XLI is approaching not just a big macro level that has formed over the last several weeks, but it is also closing in on a 52-week high. Keep a close eye on these levels as they may or may not act as resistance. If price breaks above and holds, that would give way to a gap fill to the yearly high.
Watch the video below for more details!
My Smart Trades options trading service is where I teach my students how I trade options on some of the largest ETFs on the exchange. As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can learn how many use this high-income skill to achieve financial freedom. Join today!
I look forward to trading with you, but until then, as always…
