XLI runs into sellers again around 70.00
Industrial Select Sector SPDR ETF (XLI) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
XLI ended Thursday at 68.98 gaining $0.59 (0.86%) on low volume ahead of tomorrow's Independence Day OBS market holiday. Trading $0.51 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (XLI as at Jul 02, 2020):
Thursday's trading range has been $1.19 (1.71%), that's below the last trading month's daily average range of $1.77. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for XLI.
After spiking up to 70.00 during the day, the market found resistance at the 20-day moving average at 69.85. After having been unable to move above 69.94 in the previous session, XLI ran into sellers again around the same price level today, failing to move higher than 70.00. The last time this happened on June 26th, XLI actually gained 3.28% on the following trading day.
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for XLI. Out of 44 times, XLI closed lower 59.09% of the time on the next trading day after the market condition occurred.