Materials Select Sector SPDR Is Close to its 50 Day Moving Average

Published on Friday, 08 March 2013 08:42 Written by TradersHuddle Wire

New York, March 8th (TradersHuddle.com) - Materials Select Sector SPDR Fund (NYSE:XLB) closed the trading day at $39.27, near its 50 day moving average that is set at $38.79. Materials Select Sector SPDR's price action is just above this important support level, providing a trading opportunity.

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.

The peaks and troughs algorithm shows calculated support at $37.35 and calculated resistance at $39.18. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Materials Select Sector SPDR should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.