XLK climbs to highest close since September 12th
Technology Select Sector SPDR ETF (XLK) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XLK finished the week 1.14% higher at 81.47 after gaining $1.01 (1.26%) today on high volume. Today's close at 81.47 marks the highest recorded closing price since September 12th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (XLK as at Oct 11, 2019):
Friday's trading range has been $0.97 (1.19%), that's slightly below the last trading month's daily average range of $1.18. 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 slightly higher than usual for XLK.
Five candlestick patterns are matching today's price action, the Bearish Doji Star, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Shooting Star showed up on Monday, XLK lost -1.83% on the following trading day.
Prices are trading close to the key technical support level at 80.88 (S1). Unable to break through the key technical resistance level at 82.18 (R1), the ETF closed below it after spiking up to 82.29 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 82.78, upside momentum could speed up should the market be able to break out to new highs for the year. Trading close to August's high at 82.62 we might see further upside momentum if potential buy stops at the level get activated.
Among the 10 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 XLK. Out of 177 times, XLK closed higher 58.19% 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 64.41% with an average market move of 0.65%.