Jan. 12 at 7:01 PM
The consumer staples sector is showing renewed bullish technical signals, with the XLP ETF posting a strong advance on heavy volume and forming a bullish candlestick, often linked to institutional buying. Over the long term, every test of the 50-month moving average has acted as support and preceded sustained rallies, strengthening the case for upside into 2026.
Relative strength trends also support this view. Historically, when XLP finishes a year among the weakest S&P 500 sectors, it tends to deliver strong performance the following year. Stock selection is increasingly important, with several consumer staples already breaking out on constructive technical setups.
Among large caps, Target has rebounded sharply after a difficult year, showing improving momentum, relative strength versus XLP, and an attractive dividend yield. Coca-Cola has reclaimed key moving averages, is outperforming its main rival, and offers a defensive profile with steady income.
$XLP $TGT $KO