Swing Trade Idea – (XLF) – December 3, 2020
Our bullish trade for Thursday, December 3rd is the Financial Sector ETF (XLF). XLF is an ETF composed of financial institutions with a large weighting on major banks. XLF has experienced a 17.7% gain in the last month and its 1M and 6M trends turned bullish on November 5th.
XLF broke above $27 resistance and has retested and rejected this level confirming a bullish trend. With a technical score of 6 (out of 10), XLF is a neutral ETF that will likely move higher.
As a stop loss, if XLF were to trade below $27.17 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $1.00.
