FAZ: Long Setup Watch List
Reason: XLF is displaying a potential Double Top
From the April 11 low XLF, as well as the majority of US Indices & Sectors, has unfolded a corrective Elliott Wave pattern, which can be counted as a Double Zig Zag.
Even though SPX and NDX probably have not concluded yet their corrective patterns (Though the top should be close to current levels) XLF is displaying a potential Double Top with negative divergence of the daily RSI.
If the Double Top is confirmed, in which case the current bounce MUST establish a lower high; the target is located at 21.95.
FAZ does not have a Double Bottom but on Tuesday when it established a lower low it printed a Hammer at the same time the MACD has a bearish failure (Maintaining the bullish cross) and it is displaying a positive divergence hence odds favour that a potential Double Zig Zag from the April 11 high has been concluded.
If this is the case the target located in the range 19.33 - 19.74 should be viable.