Chart AnalysisXLYBULLISH

📊AI Chart Analysis: XLY

Technical chart analysis powered by AI vision

Friday, February 6, 2026
Generated by Cutting Edge AI
⚠️ Educational Content Only - Not Investment Advice

📋Executive Summary

BULLISHMEDIUM Confidence

XLY remains in a multi-month uptrend (algorithimic Stage 2) but has pulled back into a short-term correction, testing mid-term support near the SMA(150/200). The recent high-volume sell-off then intraday recovery suggests potential absorption and a likely bullish continuation toward prior highs if support holds.

Target Price

$124.50

Timeframe

2-4 weeks

Pattern Analysis

Bullish continuation with corrective pullbackFORMINGMEDIUM

If price stabilizes above $117–118 and reclaims the 50 SMA/EMA band (~$120–121), expect a run to the prior high at ~$124.5. Failure below SMA(150) and SMA(200) would invalidate continuation bias and shift pattern toward larger corrective range.

💡 Institutions accumulated earlier (uptrend); retail/profit-taking triggered a corrective leg that swept stops below visible demand. If smart-money absorption is real, protracted selling will be short-lived and larger players will push price back toward prior highs to capture remaining liquidity.

Measured Move Target: $124.50

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⚠️ Disclaimer: This AI-generated analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.