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XLP is building liquidity below $80.76. A stop-hunt below that level, followed by a reclaim and bounce into resistance, fits a classic technical reversal pattern.

Backed by defensive fund sentiment and sector rotation news, this trade setup combines both technical edge and macro strength.

Trade Thesis: Liquidity Grab Below $80.76
Liquidity build: XLP is consolidating just below the key support level at $80.76, where stop orders likely cluster.

Hunt pattern: We expect a sharp move slightly below that level—hunting stops—followed by a quick bounce.

Post-stop recovery: After triggering the stops, XLP should reclaim $80.76, rallying into the nearby resistance zone around $82.50–$83.20.

📈 Technical Setup
Support structure:

Green zone between $79.80–$80.76 — a well-defined demand area. Prior rebounds from here signal buyers waiting to pounce.

Resistance zone:

Red area between $82.05–$82.84 — a supply zone with overhead resistance, target for profit-taking.

Expectations:

A dip below $80.76 triggers stop-loss liquidity.

A swift bounce back above $80.76 confirms reversal.

First target: mid-resistance ~ $82.05; full move towards high end (~$82.84).

🔎 Professional Observation
The chart shows classic liquidity sweep behavior: small dip, then strong reversal.

Using stop-hunt logic increases odds—institutions often design moves like this to trigger stops before reversing.

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