The Greedy Trader Weekly Analysis
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Select Sector SPDR ETFs Technical Analysis - XLB

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- 1/16/2026 -
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Materials Select Sector SPDR (XLB) Technical Analysis

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Summary:
Weekly :Broken uptrend resistance line - uptrend exhaustionWilliams' Percentage Range and Lane's Stochastic are strongly overboughtStochastic has declined below the signal lineBroken trend resistance line
Daily :Williams' Percentage Range is overboughtLane's Stochastic is strongly overboughtStochastic has declined below the signal line
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It was a sixth consecutive positive week for the Materials Select Sector SPDR (XLB). During the week, the XLB climbed 0.42 points, or 0.87%, and closed at 48.68 on Friday, January 16, 2026. Weekly volume was 10% above average.

Long-term trend: [See XLB long-term trend chart]
A long-term downtrend had started on October 18, 2024 at 48.94 and reached 36.56 on April 8, 2025. XLB lost 12.38 points, or 25.30%, in 24 weeks. The chart has formed a Symmetric Triangle chart pattern. The downtrend resistance line (43.92) is broken. Usually a broken resistance is considered to be a long-term bullish signal, but since daily indicators are overbought a short-term pull back is possible. XLB may retest the broken resistance line. It is considered to be a support line now. Use the following links to access Trend Support/Resistance Help, or use the Technical Stock Screener to see the list of stocks with broken 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 49.14 on January 14, 2026. XLB gained -7.10 points, or -16.89%, in 10 weeks. The chart has formed a Rising Channel chart pattern. The uptrend resistance line (44.58) is broken, while daily and weekly technical indicators are overbought. Uptrend is exhausted and trend reversal is possible soon. Use the following links to access Trend Support/Resistance Help, or use the Technical Stock Screener to see the list of stocks with broken trend resistance line in a medium-term trend.

Weekly Technical Indicators: [See XLB weekly technical indicators chart]
Weekly Williams' Percentage Range and Lane's Stochastic are strongly overbought. Use the Technical Stock Screener to see the list of stocks with strongly overbought weekly overbought Williams' Percentage Range and Lane's Stochastic. During the last week, weekly Lane's Stochastic main line (%K) has declined below the overbought signal line (%D). Such crossover is considered a bearish signal. 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. 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 49.14 on January 14, 2026. XLB gained -5.79 points, or -13.36%, in 35 days. The chart has formed a Broadening Ascending Wedge chart pattern. The trend support level is at 47.19 and resistance is at 49.64. A Broadening Ascending Wedge pattern is considered to be a reversal formation. It usually appears in a mature trend, characterized by overbought/oversold long-term and short-term indicators, and often generates divergence on long-term indicators. Use the following link to access a Broadening Ascending Wedge chart pattern help, or use a Technical Stock Screener to see the list of stocks with Broadening Ascending Wedge pattern in a short-term trend.

Daily Technical Indicators: [See XLB daily technical indicators chart]
Daily Williams' Percentage Range is overbought while Lane's Stochastic is strongly overbought. Use the Technical Stock Screener to see the list of stocks with overbought daily Williams' Percentage Range or strongly overbought daily Lane's Stochastic. During the last week, daily Lane's Stochastic main line (%K) has declined below the overbought signal line (%D). Such crossover is considered a bearish 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.

Daily Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 70.43
Williams' Percentage Range (W%R) 14.10
Overbought
Lane's Stochastic (%D-Slow) 92.92
Strong Overbought
Greed/Fear Indicator (GFI) 83.09
Overbought
Moving Average Converg./Diverg. (MACD) 0.91
Weekly Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 75.67
Williams' Percentage Range (W%R) 8.00
Strong Overbought
Lane's Stochastic (%D-Slow) 93.54
Strong Overbought
Greed/Fear Indicator (GFI) 81.96
Overbought
Moving Average Converg./Diverg. (MACD) 0.17
Trading Signals
Description Value Chart
Upper Bollinger Band 49.69
Weekly Trendline Resistance 49.64
Daily Stochastic Crossing 48.91
Weekly Stochastic Crossing 48.77
Price 48.68
Parabolic System 47.56
Weekly Trendline Support 47.19
20 Day Moving Average 46.85
Monthly Trendline Resistance 46.70
50 Day Moving Average 45.03
Yearly Trendline Resistance 44.58
Monthly Trendline Support 44.58
Lower Bollinger Band 44.39
Yearly Trendline Support 43.92
Sector and Industry
Description Name Rank
Sector
Industry
Daily Trend
Description Value
Direction Down
Chart Pattern DownTrend
High 49.14
High Date 01/14/2026
Low 48.36
Low Date 01/16/2026
Weekly Trend
Monthly Trend
Description Value
Direction Up
Chart Pattern Broadening Ascending Wedge
Status Valid
Resistance 49.64
Support 47.19
Low 43.35
Low Date 12/10/2025
High 49.14
High Date 01/14/2026
Description Value
Direction Up
Chart Pattern Rising Channel
Status Broken Resistance
Resistance 46.70
Support 44.58
Low 42.04
Low Date 11/04/2025
High 49.14
High Date 01/14/2026
Quarterly Trend
Yearly Trend
Description Value
Direction Up
Chart Pattern Uptrend
Status
Resistance
Support
Low 36.56
Low Date 04/08/2025
High 49.14
High Date 01/14/2026
Description Value
Direction Down
Chart Pattern Symmetric Triangle
Status Broken Resistance
Resistance 44.58
Support 43.92
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.