XRT has a very nice uptrend in tact. Since mid December 2011, this has been a tight uptrend channel. At the moment, XRT is putting pressure on uptrend support after testing channel resistance early last week. A break of uptrend support would translate to a strong opportunity to place a bearish strategy on XRT.
Note the blue horizontal line we drew on Relative Strength Index (RSI) at the bottom of the chart. That 55 level has been a level of interest from a resistance perspective, and more recently support. RSI in XRT is breaking below 55 RSI support, which indicates the stock is potentially losing it’s directional momentum. In the case, the directional momentum has been to the upside, so this may be yet another signal the stock is topping.
Food for thought, but nothing worth acting on just yet.