Attractive long-term investment if XFN trades below 40.9
Attractive long-term investment if XFN stock price trades below 40.9
XFN which tracks the S&P/TSX Capped Financials Index mostly represents the performance of five big banks. The average yearly return between 2002 and 2021 is about 8.1% which implies poor performance given the high volatility of ETF’s past returns. The fact that XFN long-term secular rising trend has experienced three major falls in price over 20-year period suggests that the best time to invest in the ETF is when price has fallen more than 30% from its high.
Given the top pattern and having traded below 200-day moving average, XFN stock price is likely to face more downward pressure within the next 6 months. If price falls between 32.9 and 40.9 it would make an attractive buying opportunity given the base case scenario price target of 45.1.
The worst-case scenario is to see XFN stock price trades below 32.9 and above 22 by the end of 2023 which is a decline between 28 to 50% from current level.
The key levels to watch are 43.15, 40.9 and 39.6 where a possible rebound around these levels are expected.
XFN which tracks the S&P/TSX Capped Financials Index mostly represents the performance of five big banks. The average yearly return between 2002 and 2021 is about 8.1% which implies poor performance given the high volatility of ETF’s past returns. The fact that XFN long-term secular rising trend has experienced three major falls in price over 20-year period suggests that the best time to invest in the ETF is when price has fallen more than 30% from its high.
Given the top pattern and having traded below 200-day moving average, XFN stock price is likely to face more downward pressure within the next 6 months. If price falls between 32.9 and 40.9 it would make an attractive buying opportunity given the base case scenario price target of 45.1.
The worst-case scenario is to see XFN stock price trades below 32.9 and above 22 by the end of 2023 which is a decline between 28 to 50% from current level.
The key levels to watch are 43.15, 40.9 and 39.6 where a possible rebound around these levels are expected.
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