- Price action honing in on likely support at $126.04
- Falling prices have precipitated Health Care Select Sector SPDR Fund's approach to its lower Bollinger Band® at $126.53
Having fallen $6.42 in 12 days, Yesterday's session continued down the same path: Health Care Select Sector SPDR Fund dipped as low as $126.41 before recovering some lost ground. However, the rebound failed to push the stock to where it started the session ($126.56) with Health Care Select Sector SPDR Fund closing the day at $126.96.
All in all, the fund has been on a negative trend for around 2 months. So far this year, Health Care Select Sector SPDR Fund has declined 6.27% while touching highs around $142.83 earlier this year.
Trend analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at $126.53, a low enough level to, generally, suggest that Health Care Select Sector SPDR Fund is trading below its fair value. Chart analysis indicates Health Care Select Sector SPDR Fund could begin to recover as it approaches significant support, now 92 cents away from $126.04. Dipping below could be an indication that further losses are ahead.
Overall, the technical outlook suggests Health Care Select Sector SPDR Fund is likely to remain muted for the immediate future, with no clear-cut direction.
Fundamental indicators – United States Crude Oil Inventories beat the 457,000 projections, with 1.17 million.
In the meantime, negative performances are also seen in other markets, Lowe's falls 5.56% yesterday and closed at $205.75. Royal Bank Of Canada lost 3.1% yesterday and closed at $101.48.
Other assets are showing positive performances as Caterpillar is trading around $248.67 after ending yesterday's session at $239.55 (up 3.81% today).
Upcoming fundamentals: today at 13:30 UTC data for United States Initial Jobless Claims will be released, with an expected decline to 195,000 from the preceding figure of 192,000.