This week we will take a look at a sector ETF that has been gaining attention by investors for a number of reasons. The Homebuilders
However, the sector has recently seen a stable increase in the amount of interest for new homes. This week, with the Federal Reserve's decision to leave rates unchanged for the duration of 2019, the sector has now sort of seen an "all clear for now" from investors and decent uptick in prices.
For this reason, as well as the technical support of the 200-day moving average, we'll look for a new long position on the popular ETF. The trade of the week is based on Wednesday's and Thursday's price actions, which showed this support right smack at the 200-day moving average.
The trade of the week is to play the XHB long right here at the $38.50 level and look for a break to new highs. The prior high was at $39.50 and the next real resistance area seems to put prices at the $40 level in the short term. Given the lower cost of this ETF, active traders can look to simply purchase shares of the ETF with the goal of hitting the $40 as a first and main target.