When Technology Select Sector Spdr (XLK) Moves Investors should Listen

June 27, 2021, 19:15 pm ET, BY John- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

How do we know what is going on #behindthescenes of a company?  According to Stock Traders Daily, a 20-year #financialindustry innovator, the best way to do this to to watch the price action in the stock. The  Technology Select Sector Spdr (NYSE: XLK) report below is a real world example. Included are trading plans for XLK, but this report is static. If you want an update, or a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for XLK

• Buy XLK slightly over 143.11 target 148.39 stop loss @ 142.7 Details

The technical summary data tells us to buy XLK near 143.11 with an upside target of 148.39. This data also tells us to set a stop loss @ 142.7 to protect against excessive loss in case the stock begins to move against the trade. 143.11 is the first level of support below 145.23 , and by rule, any test of support is a buy signal. In this case, support 143.11 is being tested, a buy signal would exist.

• Short XLK under 148.39, target 143.11, stop loss @ 148.82 Details

The technical summary data is suggesting a short of XLK as it gets near 148.39 with a downside target of 143.11. We should have a stop loss in place at 148.82though. 148.39 is the first level of resistance above 145.23, and by rule, any test of resistance is a short signal. In this case, if resistance 148.39 is being tested, a short signal would exist.

Swing Trading Plans for XLK

• Buy XLK slightly over 146.02, target 148.39, Stop Loss @ 145.6 Details

If 146.02 begins to break higher, the technical summary data tells us to buy XLK just slightly over 146.02, with an upside target of 148.39. The data also tells us to set a stop loss @ 145.6 in case the stock turns against the trade. 146.02 is the first level of resistance above 145.23, and by rule, any break above resistance is a buy signal. In this case, 146.02, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short XLK near 146.02, target 144.58, Stop Loss @ 146.44. Details

The technical summary data is suggesting a short of XLK if it tests 146.02 with a downside target of 144.58. We should have a stop loss in place at 146.44 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 146.02, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for XLK

• Buy XLK slightly over 145.55, target 146.02, Stop Loss @ 145.21 Details

If 145.55 begins to break higher, the technical summary data tells us to buy XLK just slightly over 145.55, with an upside target of 146.02. The data also tells us to set a stop loss @ 145.21 in case the stock turns against the trade. 145.55 is the first level of resistance above 145.23, and by rule, any break above resistance is a buy signal. In this case, 145.55, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short XLK near 145.55, target 144.58, Stop Loss @ 145.89. Details

The technical summary data is suggesting a short of XLK if it tests 145.55 with a downside target of 144.58. We should have a stop loss in place at 145.89 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 145.55, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

XLK Ratings for June 27:

Term →	Near	Mid	Long
Rating	Strong	Strong	Strong
P1	0	0	137.62
P2	145.55	144.58	143.11
P3	146.43	146.02	148.39

Support and Resistance Plot Chart for XLK

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