The Greedy Trader Weekly Analysis
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- 1/2/2026 -
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Materials Select Sector SPDR (XLB) Technical Analysis

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Summary:
Weekly :Williams' Percentage Range and Lane's Stochastic are overboughtTrend resistance at 46.18
Daily :Stochastic signal line moved below overbought areaLane's Stochastic and MACD bearish divergenceThe price has fallen below the Parabolic SAR
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It was a fourth consecutive positive week for the Materials Select Sector SPDR (XLB). During the week, the XLB climbed 0.01 points, or 0.02%, and closed at 46.12 on Friday, January 2, 2026. Weekly volume was -31% below average.

Long-term trend: [See XLB long-term trend chart]
A long-term downtrend had started on July 10, 2025 at 46.43 and reached 42.04 on November 4, 2025. XLB lost 4.39 points, or 9.46%, in 16 weeks. The chart has formed a Broadening Right-Angled, Descending Wedge chart pattern. The price is near the trend resistance line (46.18). The resistance is usually stronger when technical indicators are overbought. Use the following links to access Trend Support/Resistance Help, or use the Technical Stock Screener to see the list of stocks with price testing the trend resistance line in a long-term trend.

Medium-term trend: [See XLB medium-term trend chart]
A medium-term uptrend had started on November 4, 2025 at 42.04 and reached 46.18 on January 2, 2026. XLB gained -4.14 points, or -9.85%, in 8 weeks. Price is near the trend high.

Weekly Technical Indicators: [See XLB weekly technical indicators chart]
Weekly Williams' Percentage Range and Lane's Stochastic are overbought. Use the Technical Stock Screener to see the list of stocks with overbought weekly Williams' Percentage Range and Lane's Stochastic. Oscillators are designed to signal a possible trend reversal. They can act as alerts and should be taken in conjunction with other technical analysis tools. Oscillators can be used to confirm other technical signals. Use the following links to access Lane's Stochastic and Williams' Percentage Range help.

The weekly MACD line is above its signal line since December 12, 2025. This is an indication that the medium-term trend is up. The distance between MACD and the signal line is low, but getting bigger. It indicates that the current medium-term uptrend is getting stronger. Use the following link to access a MACD help.

Short-term trend: [See XLB short-term trend chart]
A short-term uptrend had started on December 10, 2025 at 43.35 and reached 46.18 on January 2, 2026. XLB gained -2.83 points, or -6.53%, in 23 days. Price is near the trend high.

Daily Technical Indicators: [See XLB daily technical indicators chart]
Daily technical indicators are neutral. During the last week, daily Lane's Stochastic signal line (%D) has moved below overbought area. Such crossover is considered a bearish signal. Daily Lane's Stochastic and MACD have bearish divergence. Use the following links to access the Lane's Stochastic and MACD help, or use the Technical Stock Screener to see the list of stocks with daily Lane's Stochastic and MACD bearish divergence. The divergence between price and indicator is considering one of the most important buy/sell stocks trading signal.

The daily MACD line is above its signal line since November 20, 2025. This is an indication that the short-term trend is up. The distance between MACD and the signal line is low and getting smaller. It indicates that the current short-term uptrend is getting weak.

During the last week, the price has fallen below the Parabolic SAR (stop and reversal). A Parabolic SAR above the price is a bearish signal, and it indicates that momentum is likely to remain in the downward direction. A Parabolic SAR is used as a trailing stop loss for long or short positions. It works best during strong trending periods. Use the following links to access Parabolic SAR Help, or use the Technical Stock Screener to see the list of stocks with the Parabolic SAR close to the price level.

Daily Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 67.48
Williams' Percentage Range (W%R) 23.20
Lane's Stochastic (%D-Slow) 71.07
Bearish
Greed/Fear Indicator (GFI) 71.79
Moving Average Converg./Diverg. (MACD) 0.47 Bearish
Weekly Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 58.77
Williams' Percentage Range (W%R) 19.40
Overbought
Lane's Stochastic (%D-Slow) 82.26
Overbought
Greed/Fear Indicator (GFI) 72.10
Moving Average Converg./Diverg. (MACD) 0.02
Trading Signals
Description Value Chart
Upper Bollinger Band 46.75
Parabolic System 46.22
Monthly Trendline Resistance 46.18
Price 46.12
Daily Stochastic Crossing 45.85
Weekly Stochastic Crossing 45.52
20 Day Moving Average 45.09
50 Day Moving Average 44.17
Lower Bollinger Band 43.60
Monthly Trendline Support 41.44
Sector and Industry
Description Name Rank
Sector
Industry
Daily Trend
Description Value
Direction Up
Chart Pattern Uptrend
Low 43.35
Low Date 12/10/2025
High 46.18
High Date 01/02/2026
Weekly Trend
Monthly Trend
Description Value
Direction Up
Chart Pattern Uptrend
Status
Resistance
Support
Low 42.04
Low Date 11/04/2025
High 46.18
High Date 01/02/2026
Description Value
Direction Down
Chart Pattern Broadening Right-Angled, Descending Wedge
Status Test Resistance
Resistance 46.18
Support 41.44
High 46.43
High Date 07/10/2025
Low 42.04
Low Date 11/04/2025
Quarterly Trend
Yearly Trend
Description Value
Direction Up
Chart Pattern Uptrend
Status
Resistance
Support
Low 36.56
Low Date 04/08/2025
High 46.43
High Date 07/10/2025
Description Value
Direction Down
Chart Pattern DownTrend
Status
Resistance
Support
High 48.94
High Date 10/18/2024
Low 36.56
Low Date 04/08/2025
Warning: TheGreedyTrader.com presents weekly analysis. Technical indicators and trend parameters are calculated for the close of business day indicated on the top right corner of the screen.