“From a technical perspective, consumer staples may run into some technical headwinds in the near term, said Blue Line Futures president Bill Baruch,” according to CNBC.
XLP provides “exposure to companies from the food and staples retailing, beverage, food product, tobacco, household product and personal product industries in the U.S.,” according to State Street.
“The XLP has been pretty constructive for the second half of the year. In fact, you’ve got a golden cross recently, and now you have the 100-day moving average looking to move above the 200 [day moving average]. But here’s my problem. … You have a trend line that’s coming in right [around the $55 level], and that’s going to pose a lot of resistance. Even today’s move that’s above the 50-day moving average and above a retracement level is going to run into a brick wall up there,” said Baruch in an interview with CNBC.
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