XLE closes higher for the 3rd day in a row
Energy Select Sector SPDR Fund (XLE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLE ended Thursday at 30.39 gaining $1.75 (6.11%). Closing above Wednesday's high at 30.00, the ETF confirmed its breakout through the prior session high after trading up to $1.00 above it intraday.
Daily Candlestick Chart (XLE as at Mar 26, 2020):
Thursday's trading range has been $2.43 (8.4%), that's slightly below the last trading month's daily average range of $2.50. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for XLE.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, XLE gained 4.72% on the following trading day.
Prices are trading close to the key technical resistance level at 32.22 (R1).
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for XLE. Out of 359 times, XLE closed higher 50.70% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.66% with an average market move of 0.14%.