The past several years have seen Health Care stocks perform at a high level. In fact, the Health Care Sector ETF (XLV) has been a top performing sector, helping to lead the bull market rally. Check out the table in the lower left of the chart below, showing the 9 major sectors making up the S&P 500.
Over the past year, the sector has come under some pressure. Much of it had to do with being a high-flyer and the broader market sell-off, while some of it had to do with a few drug scandals that painted the sector with a broad brush.
But the Health Care ETF (XLV) is rising again. Or, that is, it’s trying to rise again.
Looking at the chart below, the XLV is currently within a rising 6 year price channel (A). It recently held major support on the lower side of the channel and is now attempting to rally.
XLV is now testing an important falling resistance trend line within the channel at point (1) on the chart.
A breakout above this resistance line would be very positive for health care stocks and likely attract buyers to this sector once more.
A breakout here would likely target a re-test of the highs (mid-70’s). But should XLV struggle here… then all eyes on that bull market trend line.
Thanks for reading and have a great weekend.
Twitter:Â Â @KimbleCharting
The author does not have a position in related securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
