The financial sector is well known as the lifeblood of an economy. Financials have dominated the markets over the past years with their uptrend.
If we take a look at the XLF, Financial Selected Sector SPDR Fund, for example, we can see an uptrend in this sector since the end of economic crises. Just in a 5y XLF is up more than 22%.
Note that the price movements in this sector can lead to major cyclical moves. The current prices and the growing sense of geopolitical tension could be a reason to re-evaluate exposure there.
XLF has lost 4% in a week.
This year has not been kind to the bank’s stocks, which has the battle with an attempted to move higher.
For instance, BAC.
Bank of America stock has one of the strongest uptrends in the market since the end of the financial crisis. In comparison with XLF, BAC is up 88% in 5y.
Since January stock has been trading in a range from $26.5 to $31.2.
In such a sideways trend, it is hard to know what to expect, but we will pay close attention at MA200, which stands as a strong support level and the price at $28.
If the price break below those levels, the long-term bearish sell signal will likely to come and mark the beginning of a long-term downtrend.
Source, chats by Tradingview