Morpheus Trading: In last Friday’s commentary, we pointed out a potential buy setup in S&P Technology SPDR (NYSEARCA:XLK). Since $XLK did not trigger for swing trade entry last Friday, we are canceling that setup in favor of a bullish setup in First Trust Financials AlphaDEX Fund (NYSEARCA:FXO).
$FXO has recently pulled back to support of its rising 50-day moving average, after stalling at the prior high. The 20-day exponential moving average has just crossed above the 50-day moving average, which is a positive sign signaling that the current consolidation may soon lead to a breakout:
Although a moving average crossover is never a guarantee of anything, the moving averages point to a positive shift in momentum over the past few weeks. Furthermore, notice that long-term support of the 200-day MA still remains in a clear uptrend.
We look for $FXO to chop around for a few more days or weeks above the 50-day moving average (minus a few shakeout bars). As long as the price action holds above the 50-day moving average, the ETF should eventually break the downtrend line and move out to new highs.
In case that bullish move happens sooner, rather than later, we have listed $FXO as a new trade setup today.(...)Click here to continue reading the original ETFDailyNews.com article: Watching Our Weekly ETF TradesYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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