7 SPDR S&P Retail ETF (XRT) Levels to Watch This Holiday Season

The SPDR S&P Retail ETF (XRT) should stay in focus as the holiday season rages on

Senior Vice President of Research
Nov 28, 2016 at 2:36 PM
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With the holiday shopping season in full swing, retail stocks are front and center on Wall Street. Like the broader equities market, the retail sector has rallied since the U.S. presidential election earlier this month, leaving some to wonder how much more room these stocks have to run. Looking at a chart of the SPDR S&P Retail ETF (XRT) -- the retail sector's exchange-traded fund (ETF) -- we notice seven key levels that could play pivotal roles in the weeks ahead. 

As mentioned above, XRT has moved higher in a hurry since the election, gaining close to 11% to trade at $46.21. This comes after the ETF found support near the $41 mark, which sits just above its rising 60-month -- or 5-year -- moving average, and represents 80% of XRT's 2015 high. This area, along with the round $40 mark, has acted as support for XRT in recent years.

Meanwhile, the ETF's post-election rally helped it push past previous highs from March and August in the $46 range, as it closed Friday at $46.64. XRT hit an annual high of $47.14 during the session, which is less than 50 cents off of its 10% year-to-date gain level, positioned at $47.56. It's also worth noting that peak call open interest resides at the front-month December 47 strike. 

Along with the two areas mentioned above, there are five other levels to watch for the SPDR S&P Retail ETF (XRT) going forward: 

  • $43.50 - 2x the ETF's 2011 low
  • $44.40 - 6x the ETF's 2009 low
  • $45.14 - 1.1x XRT's November closing low
  • $46.06 - 1.2x XRT's 2016 closing low
  • $46.13 - 0.9x the ETF's all-time high

Monthly chart of XRT Nov 28

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