$XLY
Price bounced back after Monthly RSI hit bottom & Daily price formed a strong Bull Div. (Yellow indicators)
A push above Monthly Resistance 1 would bring price into it's new consolidation channel where MR2 represents the top.
Price has been holding in the upper range of its current channel despite daily declining volume.
if price fails to break MR1 confidently, price will oscillate between historical bottom and monthly resistance 1 (70% downside) providing good accumulation opportunity.
A push above MR1, would lead to a potential 90% upside till MR2.
Expect a Test of MR1 as new support.
Once MR2 is reached (tested), it will be heavily shorted and then bottom out at MR1 before moving in for another push.
Would not enter here if not already holding.
If holding, Sell here or hold till MR2.
Low Risk Play: Wait for second test of MR1 as Support and target second test of MR2.
A push above Monthly Resistance 1 would bring price into it's new consolidation channel where MR2 represents the top.
Price has been holding in the upper range of its current channel despite daily declining volume.
if price fails to break MR1 confidently, price will oscillate between historical bottom and monthly resistance 1 (70% downside) providing good accumulation opportunity.
A push above MR1, would lead to a potential 90% upside till MR2.
Expect a Test of MR1 as new support.
Once MR2 is reached (tested), it will be heavily shorted and then bottom out at MR1 before moving in for another push.
Would not enter here if not already holding.
If holding, Sell here or hold till MR2.
Low Risk Play: Wait for second test of MR1 as Support and target second test of MR2.
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