New York, July 29th (TradersHuddle.com) – Shares of Materials Select Sector SPDR Fund (NYSE:XLB) are trading very close to calculated support at $36.37 with current price action closing at just $38.01 places the stock price near levels where traders will start paying attention.
Materials Select Sector SPDR Fund (NYSE:XLB) seeks to provide investment results that correspond to the price and yield performance of the Materials Select Sector of the S&P 500 Index. The Index primarily consists of companies involved in such industries as chemicals, construction materials, containers and packaging, metals and mining, and paper and forest products. The Fund utilizes a passive or indexing investment approach to attempt to approximate the investment performance of the Index.
Materials Select Sector SPDR’s current stock range is defined by current calculated support defined at $36.37 and by the resistance level at $40.72, which should be used by traders planning their trades.
Traders wanting to establish a position should place close attention to Materials Select Sector SPDR’s price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $40.72 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.