Conclusion, Investment Implications, Strategy
The SPDR S&P Telecom ETF (XTL) is currently in the midst of a May 10th major uptrend while breaking a major overhead resistance level at 91.88. Meanwhile, the total net assets invested in XTL are in a late June trend of monthly expansion while XTL has been outperforming the benchmark S&P 500 on a quarterly basis since June 27th. Together, these factors establish favorable conditions for more outright strength and relative outperformance from Telecom.
XTL Breaking Major Overhead Resistance
The upper panel of Chart 1 below shows that the SPDR S&P Telecom ETF (XTL) is in the midst of a May 10th major uptrend as defined by its 200-day moving average. Not shown is that over the past two sessions, XTL has broken a major overhead resistance level at its 91.88 August 2022 benchmark high. The middle panel shows that the total net assets invested in XTL (AUM) are in the midst of a Jun 27th trend of monthly expansion. Expanding assets indicate bullish conviction. The lower panel shows that XTL has been outperforming the benchmark S&P 500 (SPX) on a Strategic quarterly basis also since Jly 27th.
As long as these three conditions remain true, the price of XTL is likely to continue moving higher in the weeks ahead.
Chart 1
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.
Table 1
Click the table to make it larger