XLF: Trap-Island Reversal

DAILY

• Falling channel since Feb of this year
• Broken below the channel in late October
• It recovered and back inside the channel last few weeks
• Island bottom reversal
• Island bottom occurred during the fake break down (bear trap) = reversal is that much stronger
• Recent swing high of 27 is reclaimed, minor-term bullish

WEEKLY

• Made lower low similar to early 2016 (red box)
• technically we are still in a down trend intermediate term (lower lows and lower highs)
• For the full confirmation of a full reversal, needs to reclaim 29 and hold above
• After a reversal confirmation, expecting another bullish rally for a year or two