The communications and media exchange-traded fund (XLC) has started the year with some impressive gains of around 10% so let's check out the charts to see if the good times can continue.
In this daily bar chart of XLC, below, I can see some basing price action since late September. Prices have firmed to test the declining 200-day moving average line. Prices are above the rising 50-day moving average line. The daily trading volume has been more active since early September, and I view that as a positive development. The daily On-Balance-Volume (OBV) line made a low in October and shows a rise. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of XLC, below, I can see some positive developments. Prices are testing the 40-week moving average line. The trading volume has been active since September and the weekly OBV line looks like it made a low in December. The MACD oscillator has been improving for several months including a higher low.
In this daily Point and Figure chart of XLC, below, I can see a potential upside price target in the $66 area.
In this weekly Point and Figure chart of XLC, below, I can see the same $66 price target as the daily above.
Bottom line strategy: Aggressive traders could go long XLC on a two-day dip from current levels. Risk below $49 for now. $66 is our price objective.
