SPDRs Select Sector Consumer Staples ETF (XLP) recently completed a retracement back towards the area of its uptrend line and horizontal support (previous resistance of $28.20). This horizontal resistance area has now been confirmed as support. XLP is now cleared to continue its uptrend. 

As of last week XLP broke out of a small bullish wedge formed during the recent retracement, and is back above its 12ema and 21ema. Also, the Stochastics indicator is confirming strength. XLP closed last week at $28.81. 

What’s important now is that XLP has a clear horizontal resistance area identified between 28.80 and 28.87. This resistance area has been hit on nine trading days over the past seven weeks.

Although XLP might see a small retracement before breaking through the 28.87 level, once it closes above there, further upside is likely. (www.etf-portfolios.com)