XLK closes above its opening price after recovering from early selling pressure
Technology Select Sector SPDR ETF (XLK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
XLK ended the week 3.23% higher at 96.49 after edging higher $0.35 (0.36%) today ahead of tomorrow's Memorial Day market holiday. Trading up to $0.39 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, XLK gained 0.51% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XLK as at May 22, 2020):
Friday's trading range has been $1.00 (1.04%), that's far below the last trading month's daily average range of $1.79. 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 XLK.
Prices are trading close to the key technical support level at 96.07 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 97.69 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for XLK. Out of 701 times, XLK closed higher 54.49% 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 61.06% with an average market move of 0.46%.