XHB Homebuilders Weekly Chart; Fibonacci Retracements; Homebuilders Weakest Since September 2017

Homebuilders crumble -3.7% last week. The blue lines show the Fibonacci retracements for the rally from late 2016 to the January 2018 top. Price now sits on the 50% Fib at 38.44 so it will bounce or die. A bounce will be aided by the positive divergence (thin green lines). If price fails it will target the 62% Fib at 36.66.

XHB is at the lowest price since September 2017 (orange line and circle). The housing and auto sectors are the two main drivers of the economy. The brown descending triangle is in play. If price drops below 38.44, it will want to seek 33.50 to satisfy the triangle where there was lots of congestion back in late 2016 early 2017. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.