XLF pops to highest close since September 25, 2018
Financial Select Sector SPDR Fund (XLF) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XLF finished the week 0.5% higher at 28.30 after gaining $0.17 (0.6%) today on low volume. Today's close at 28.30 marks the highest recorded closing price since September 25, 2018. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (XLF as at Jul 12, 2019):
Friday's trading range has been $0.22 (0.78%), that's below the last trading month's daily average range of $0.30. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XLF.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 10th, XLF actually gained 0.04% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for XLF. Out of 302 times, XLF closed higher 49.01% 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 56.95% with an average market move of 0.34%.