Range Bound?
Or something, more sinister for the XRT? In times of volatility, we tend to inflate our concerns and this is precisely when we should keep our emotions in check, although that is obviously easier said than done. This is where technical analysis comes in handy and if we take a look at the daily chart of the XRT, which is under heavy pressure declining 8 of the last 9 sessions, one can make the case for an entry down toward the 70 area. It becomes more clear on the WEEKLY chart as the 70 number has acted as both resistance in 2022, 2023, and 2024 and perhaps now support. It is also coming into its 50 and 200 WEEK SMAs although they have shown no significance in the past. In our last consumer note a couple days ago we put up our thinking that on the MONTHLY chart a pullback into the 50 WEEK SMA made sense and that to aligns with the round 70 number. It is now about 3% from that potential support line. Will it hold? No one knows but one can make a logical bet there with a CLOSING STOP below 68.