XLF is trending upwards
The 100-day moving average for the Financial Select Sector SPDR ETF (XLF) has been trending upwards since 2013 and the ETF is trading above its 20-day, 50-day, and 100-day moving averages by 0.5%, 2.80%, and 8.43%, respectively.
The moving averages are lagging indicators because they’re based on past prices. They help identify a stock’s trends and support and resistance levels.
Moving average analysis of stocks
It’s important to note that 47 stocks among the 87 constituents of XLF traded below their 100-day moving average as of July 6. Of these, 22 are REITs.
REITs like Iron Mountain (IRM), Ventas (VTR), and Health Care REIT (HCN) are trading 14.70%, 11.50% and 10.20% below their 100-day moving averages, respectively. Iron Mountain’s stock has fallen 19.22% YTD (year-to-date), Healthcare REIT has fallen 12%, and Ventas has fallen 12.37%.
Chubb Group (CB) is trading at the highest divergence of 17.68% from its 100-day moving average of $21.46. So far, it has risen 17.31% in 2015. In the last week of June alone, it rose ~27% after the news of the acquisition by Ace.
Outperforming stocks include Zions. It’s ~8% above its 100-day moving average. YTD it has added 9.40% in value.
Stocks trading closest to their 100-day moving averages have the highest potential to break out and rise more. These stocks are Aon, CME Group, and Bank of New York Mellon. They’re trading 0.01%, 0.26%, and 0.17% away from their 100-day moving average.