XLK dominated by bulls lifting the market higher throughout the day
Technology Select Sector SPDR ETF (XLK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
XLK finished Thursday at 82.31 gaining $4.80 (6.19%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 81.09, the ETF confirmed its breakout through the previous session high after trading up to $1.42 above it intraday.
Daily Candlestick Chart (XLK as at Mar 26, 2020):
Thursday's trading range has been $4.21 (5.36%), that's below the last trading month's daily average range of $5.04. 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 slightly higher than usual for XLK.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 20-day moving average at 81.84 for the first time since February 21st. When this moving average was crossed above the last time on February 3rd, XLK gained 2.62% on the following trading day.
Although XLK is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight 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 XLK. Out of 404 times, XLK closed higher 56.68% 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 62.13% with an average market move of 0.46%.