Haven’t looked at the XLP diamond in a little while, so let’s take a fresh look. The counter-trend rally has pushed prices well into the diamond, but we’re starting to get repulsion away from the $55 level.
(Click on image to enlarge)
The potential reversal power of this pattern remains intact. We need to “escape” the confines of the diamond and, ultimately, we need to take out late 2018’s lows. This is a superbly clean diamond pattern, but we need to remain below this month’s highs in order for it to remain viable.
(Click on image to enlarge)
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