Retail Poised for a Short-term Rally (XRT, RTH)

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Retail Poised for a Short-term Rally (XRT, RTH)
The SPDR S&P 500 Retail ETF (XRT) is a broad-based retail ETF with more than 500 holdings.
If and when that breakout will occur is unknown, but buying near $78 (bottom of triangle) or on a breakout above
$80.30 (top of the triangle) present opportunities to get into a position in case the leg higher does occur.
A break above the short-term resistance (triangle in RTH or trendline in XRT) would help confirm a further move to the upside.
There are signs of life, though, with the retail ETFs bouncing off support recently, and challenging short-term resistance levels.
These retail ETFs move differently from one another because they have different holdings,
but both are bouncing off support and challenging a short-term resistance area.
The ETF traded above $50 in 2015, fell as low as $37.80 in early 2016, and has been making big swings between these levels ever since.
The price recently bounced off triangle support, indicating a move toward the top of the pattern at $80.
With the S&P 500 up 15% over the last year, retail has been a laggard.
Watch for a breakout above the triangle pattern, signaling a larger advance after two years of mostly sideways movement.
Based on the size of the triangle, an upside breakout provides a price target of approximately $88.50.

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