Real Estate finds resistance
First of all, as we can see from the Relative Strength chart, XLRE is doing better than SPY, which is our benchmark. In fact, Relative Strength is moving up and above its 20-day exponential moving average since early May.
Apart from the above throughout the last month price touched its 50-day exponential moving average three times – the green circles – but each time the bulls reacted and kept price in its ascending mode.
That being said, though, price has yet to break above the resistance line at about 36.7, although it prints higher highs lately, the blue line.
So, we will expect to see price move above 37 in a convincing way in order to confirm that the uptrend has resumed.