Below looks at Basic Materials ETF (XLB) over the past few years:
Ascending triangles are rewarding patterns to find in bulls markets, as this pattern breaks to the upside two-thirds of the time. This pattern also helps with risk management, as it helps one apply stops, should the pattern fail to break out, which it does one-third of the time.
Below looks at a different Basic Materials ETF (IYM):
Strength in Doc Copper, XLB and IYM often times is a good sign for the macro economy. If both of these would continue higher, it could send a concerning message to bond hold holders. The global growth story wants/needs to see both of these continuing to head higher.
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The Materials Select Sector SPDR (XLB) was trading at $57.81 per share on Thursday morning, up $0.13 (+0.23%). Year-to-date, XLB has gained 17.23%, versus a 14.61% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.