Rising Wedge Threatens Island Reversal in the Basic Materials SPDR

The Basic Materials SPDR (XLB) reversed higher last week with an island reversal, but stalled over the last 4-5 days and a rising wedge is taking shape. For now, the gap and island reversal dominate the chart. A move below 36 would fill this gap and break the wedge trendline. This would negate the island reversal and reverse the short-term uptrend.

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