US Pharmaceuticals : An attractive short-term opportunity? (XPH) – 19/07/17

We include in our watchlist the ETF SPDR XPH which replicates the S&P 500 Pharmaceutical Index, and is composed mainly of 41 specialty pharmaceutical stocks. This ETF expenses reach 0.35% with a liquidity of $44m and appears to be an attractive short-term trading opportunity. The long-term chart seems ready for a change in trend, which is reflected in a bullish crossover of the MACD as the prices approach the EMA26. A breakout of the 44/45 $ zone would be a significant positive factor.

XPH : monthly data

The weekly chart is improving strongly, through the ascending moving averages and the bullish MACD. It remains an important step to cross : the M100 located at 44.3 $.

Once this area is crossed, the trend would clearly become bullish.

XPH : weekly data