The headlines are saying that the fall on Friday is due to credit woes and high oil prices. If you look at XLF (Select Sector SPDR-Financial), the MACD chart is hinting on a potential reversal.
The XLF established a low of 22.13 on 11 Jun 08 and it reached a low of 21.86 on 20 Jun 08. However the MACD histogram has held above the low made on 11 Jun 08. This divergence is suggesting that a reversal is near.
However traders need to have strict discipline and stick to pre-defined stop losses in order to survive in this tough environment.
Happy trading!
1 comment:
I would never invest in financial stocks in the united states or anywhere else in the world.
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