XLP closes above its opening price after recovering from early selling pressure
Consumer Staples Select Sector SPDR Fund (XLP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XLP finished the week 0.82% higher at 64.79 after gaining $0.15 (0.23%) today on low volume ahead of tomorrow's Presidents' Day market holiday. Today's close at 64.79 marks the highest recorded closing price ever. Trading up to $0.13 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 February 7th, XLP gained 0.42% on the following trading day. Closing above Thursday's high at 64.75, the ETF confirmed its breakout through the previous session high after trading up to $0.06 above it intraday.
Daily Candlestick Chart (XLP as at Feb 14, 2020):
Friday's trading range has been $0.23 (0.36%), that's far below the last trading month's daily average range of $0.51. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XLP.
After having been unable to move above 64.75 in the prior session, XLP ran into sellers again around the same price level today, missing to move higher than 64.81.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for XLP. Out of 561 times, XLP closed higher 56.86% 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 63.28% with an average market move of 0.33%.