XLI dominated by bulls lifting the market higher throughout the day
Industrial Select Sector SPDR ETF (XLI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLI finished Thursday at 61.48 gaining $3.65 (6.31%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 60.05, the ETF confirmed its breakout through the prior session high after trading up to $1.78 above it intraday.
Daily Candlestick Chart (XLI as at Mar 26, 2020):
Thursday's trading range has been $3.42 (5.8%), that's slightly below the last trading month's daily average range of $3.85. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for XLI.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, XLI gained 5.26% 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 six 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 XLI. Out of 382 times, XLI closed higher 53.14% 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 59.42% with an average market move of 0.40%.