XLI in bullish mode

XLI – the Industrial Select Sector SPDR Fund – formed a double bottom – in the blue box - about a month ago. While the first bottom was lower than the lower Bollinger Band, in the second low the bears weren’t strong enough to push price as low as the lower Bollinger Band.

This pattern is considered bullish and the continuation was just that. After XLI broke out of the box, it never touched its 10- day exponential moving average again. Price soon reached the upper Bollinger Band and it’s currently moving along it with a strong momentum.

MACD, of course, shows this momentum by moving above its signal line and in parallel with it, a sign that the momentum hasn’t lost its strength.

Just after the beginning of January, XLI’s Relative Strength moved above its 20- day exponential moving average and it touched it only once.