- Price action breaks below important support level at $86.72
- Energy Select Sector SPDR Fund looks below $86.59 (5 day Simple Moving Average) as signpost for new negative trend
While Energy Select Sector SPDR Fund is in the midst of a 6 day up trend, Bucking the trend and turning lower, Energy Select Sector SPDR Fund weakened earlier in the day, before moving away from its $86.05 low and recovering back to $86.34.
The fund has been trending positively for about a month. Energy Select Sector SPDR Fund hit a significant low of $67.49 around 9 months ago, but has since recovered 29.25%.
Energy Select Sector SPDR Fund could begin to recover as it approaches significant support, now 38 cents away from $86.72. Dipping below could be an indication that further losses are ahead. Energy Select Sector SPDR Fund made an initial break below its 5 day Simple Moving Average at $86.59, a possible indication of a forthcoming negative trend.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts Energy Select Sector SPDR Fund to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the Energy Select Sector SPDR Fund is expected to attract significant bearish sentiment in the coming days.
Fundamental indicators – United States NY Empire State Manufacturing Index (Apr) came out at 10.8, while a consensus of analysts was expecting -18.
In the meantime, negative performances are also seen in other markets, Alphabet is down to $105.82, losing $3.64, after closing at $109.46 in the preceding trading session. ASML Holding drops 4.71% to trade around $634.84.
Other assets are showing positive performances as Wells Fargo & Company is up 3.21% to $40.91.
Upcoming fundamentals: United States Building Permits (Mar) is expected tomorrow at 12:30 UTC.