Homebuilders ETF is doing well

XHB – the SPDR S&P Homebuilders ETF – is currently trading within the blue box, with upper and lower limits at about 40.5 and 41.5 respectively.

On the other hand, with a series of mostly bullish candlesticks – see the orange box - XHB has moved from the lower Bollinger Band, through its 10- 20- and 50-day exponential moving averages to the upper Bollinger Band.

We’ll have to wait to see if XHB will continue trading in the channel between its 10-day exponential moving average and the upper Bollinger Band. To do this, price has to break through the 41.5 resistance line, as an indication of the bulls’ strength and determination.

Our momentum indicator, MACD has already depicted the uptrend and has moved above its signal line.

It’s also interesting to note from the Relative Strength chart, that XHB follows a slow but steady uptrend and is mostly moving above its 20-day exponential moving average.