Making a Mean Reversion Trade in $XLC

$XLC $META

Asset prices trend. But patterns can become stretched, and I think that’s the case here with XLC 0.00%↑ . We observed the 50 and 200 day MA’s stretching this wide to the upside in 2020/21, clearly a different environment than today. Negative RSI divergence has been observed for nearly 2 months. I’ve put a tactical short in on $XLC, with a stop at the AVWAP from the recent high (orange line).

$XLC’s largest component? META 0.00%↑ , up 150% ytd.