XLF pushes through Wednesday's high
Financial Select Sector SPDR Fund (XLF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLF finished Thursday at 21.67 gaining $1.28 (6.28%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 21.23, the ETF confirmed its breakout through the prior session high after trading up to $0.59 above it intraday.
Daily Candlestick Chart (XLF as at Mar 26, 2020):
Thursday's trading range has been $1.20 (5.81%), that's below the last trading month's daily average range of $1.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for XLF.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, XLF gained 2.72% on the following trading day.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for XLF. Out of 154 times, XLF closed higher 51.95% 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 61.69% with an average market move of 0.33%.