XLF: Oversold Buy Signal

Published 12/10/2015, 12:59 AM
Updated 07/09/2023, 06:31 AM
XLF
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N:XLF sold off today, hitting an oversold buy condition. The oversold condition is at the same level as the last oversold buy signal that occurred on November 16, where XLF rallied 1.74% in the next 3 days. The rally started with a bounce off the 23.80 level. Now XLF is right at this level again and marked the low of the day today.

XLF return 1 day

XLF Return 1 Day

The last 17 times XLF hit this signal, it returned a positive trade 75% (13 Winners/4 Losers) of the time over the next 5 days. The average return was 1.33%, with the max return The average one day return for XLF is .61% and 3-day return is 1.74%. What makes this signal nice is that easy exit the support chart provides. A break of the 23.80 level plus its 200 day EMA at 23.93, would signal a strong break in support and we can consider the trade broken, looking to re-enter another long based on the XLF Piker Signal.

XLF Return 5 days Later

XLF Buy Signal Returns

XLF Daily Chart

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